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.

Affluent: Income Rich vs. Balance Sheet Rich

I just finished reading Millionaire Women Next Door by Thomas J. Stanley, Ph.D. and became intrigued with Stanley’s references to income statement and balance sheet affluence. As a business major who has worked in financial analysis and accounting (and someone who is more balance sheet than income statement oriented!), I bonded to these terms immediately.

Learn more about these two types of affluence and why they can matter.