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

Read other articles by Jacquelyn at WParent.com on parenting matters and Tips4Everyone.com on solving marriage problems.


    9 replies to "Economic Outpatient Care"

    • Marie

      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.

      How can a parent “ensure” his Adult “children” are not dependent unless they refrain from extending financial support? Parents should step back emotionally and financially from adult children who need to make their own lives. Too many parents think they are still raising their “children” when in fact those individuals are adults and should be responsible for themselves.

    • […] presents Economic Outpatient Care posted at KCLau#8217;s Money […]

    • RockYourVote.net

      Economic Outpatient Care…

      Economic Outpatient Care“ or EOC from the book “The Millionaire Next Door” by Thomas J. Stanley and William D. Danko….

    • jacquelyn

      Hi Lai, it is never too early to start teaching our children about money planning. My spouse and I are doing the same thing with our children and we do see some results. For example, they do not buy on impulse and they keep within a budget.

    • Lai Seng Choy

      For my eldest son, I start to let him know the purpose of money and encourage him to do his own bookkeeping as well as spending plan since he was in primary 1. We (my wife and I) constantly give him advise on refining his plan. After 2 years of practising, he learns the value of money even though his bookkeeping skill still needs further improvement. By doing so, I expect he will be able take care of his finance rather than over-dependence on parents support. I am targetting to do the same to my daughter when she is in primary 1 few years later. I believe if we can teach our kids about money when they are young, daily practise will become their habit sooner or later.

    • seroja

      in mycase i didnt give my son on EOC , i made him buy with a very cheap price of the property and later sell it for more gain. eg the property is worth 150-180 k now i js sold him for 100. because we too use a lot of cash for his study

      • jacquelyn

        Hi Seroja, thanks for sharing your great idea! It is a win-win situation.

    • Nor

      HI Jacquelyn. Thank you for the great post. I did not receive EOC. I’m a girl. Compare to my brother, he receive EOC from my parents, and I do believe that he did not use it wisely. It harms him more by making him more lazy to improve himself financially, & when he has problem or make mistakes, he can come running to my parents for help.
      There always good & bad things from EOC, the way I see it, it depends on yourself whether you want to be better or worse financially. It is actually a blessing in my case, because I plan to accumulate my wealth without my parents help, so that when ‘the day’ come, I will told my brother that I did it all by myself 🙂

      • jacquelyn

        Hi Nor, I agree when you say that it depends on ourself to determine to be better off or worse financially. EOC should be used wisely if we are fortunate to receive it.

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