I first encountered the term “Economic Outpatient Care“ or EOC from the book “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko. When I first read the book over more than ten years ago, I thought EOC is very common. The term as defined in the book refers to “the substantial economic gifts and acts of kindness some parents give their adult children and grandchildren.”
Personally, I believe that EOC is just an extension of parental support through adulthood and beyond. The parents raised their children and continue to give support as they see fit. Now that I am a parent myself, I do wish to assist my children even after they reach adulthood and have families of their own. This will depend of course on whether I have the resources to do so.
I do see acquaintances or relatives that practice EOC. I observe that it is more common for those who are better off and can afford to do it often. I have been a recipient of EOC myself but it was far in between and for special circumstances only. Hence, I do not expect or anticipate it when it is given.
The book also states that “In general, the more dollars adult children receive, the fewer they accumulate, while those who are given fewer dollars accumulate more.” I believe this situation is avoidable if the recipient is taught or trained to not take it for granted and to strive to build his own fortune or wealth.
The parents or the distributor of EOC should take responsibility for ensuring the recipient is not dependent on their support. The recipient must acknowledge that the gifts should be used or invested wisely.
Some questions to ponder on are:
- Do you receive EOC?
- Do you think you fall into the statement above?
- How do you use your gifts?
- Has receiving EOC influence the way you handle your finances?
For those who do not get EOC, what do you think about this subject matter?
Reference book: The Millionaire Next Door by Thomas J. Stanley & William D. Danko, 1996 Pocket Books