The Millionaire Next Door p. 140-175

In this portion of the book the author discussed the notion and dangerous of the concept known as "economic outpatient care" or EOC. EOC is when wealthy parents financially support their adult children through annual payments, gifts, etc. While this concept sounds beneficial to the adult children of wealthy parents, in many ways it can be harmful. According to the author there are numerous well known studies that show that the overwhelming majority of those who receive EOC from their rich parents are relatively low income earners. The majority of successful millionaires are people who were taught independence and frugality at a young age. They are people who's ability to survive was based on the success of their business. Had they not strove to create the best possible business that they could, then they wouldn't be able to pay their bills. Oppositely, people who continuously receive cash gifts from their parents are typically underachievers. They don't have the same stresses as the people mentioned above because they are confident that whether or not their business does well, they will have a source of income either way. Extensive studies show that these people are the least likely to be successfully economically in life. The one exception to the EOC rule is education. In a study on millionaires, 80% of those questioned believed that their education was one of the most fundamental and important resources in their financial success. The overwhelming majority of millionaires had parents who took the brunt of the cost of their children's college educations, leaving them without debt or with minimal debt. My parents have always told me that my inheritance is my education, and that I don't have to worry about the cost of college, but that is all I'm getting. Thus, I hope that my frugality and my work ethic allow me succeed in business. And I'm confident that I won't be left with boatloads of student debt, as many recent graduates become.