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.