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11+ Examples of Economic Outpatient Care

In The Millionaire Next Door, Thomas J. Stanley, Ph.D. and William D. Danko, Ph.D. coin the term “economic outpatient care” (EOC). This term references economic subsidies that a benefactor bestows on a fully capable adult, generally a parent who provides financial assistance to a grown child.

The irony of EOC is that these subsidies — which may be intended to provide the recipient with the means to become financially stable — may have the opposite effect. Gifts create economic dependence instead of accelerating financial independence.

Initially, I imagined that EOC is a problem associated with wealthy families like those profiled in the “millionaire” books. But even average-income families give and receive EOC.

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