They may not feel pressure to save

Panhandling may not provide a steady income, but because panhandling is income (albeit unsteady income) homeless people may not feel pressure to save. Homeless people need cash to feed, clothe, and house themselves day to day. Given the uncertain, fluctuating situation they find themselves in, homeless people may not be incentivized to save extra income, rather, they will likely use the extra income on just one more necessity that can improve their life at the moment^[3]. The inability to save money for the long-term means that by giving cash, you may also be helping a beggar feed his or her substance addiction. It has been reported that six out of ten homeless people suffer from addiction; at the same time, they lack the funds that could be put towards rehabilitation^[3]. One study from Good magazine found that when given extra money and plenty of guidance on how to invest and manage their budget, the overwhelming majority of homeless people who participated were off the streets within a year; several had also sought treatment for their addictions^[4]. Without this encouragement and guidance - which a $20 bill from a passing stranger could not give you - these beggars would not have had much of an incentive to leave the streets. Instead of giving money directly to beggars, which provides only a short-term solution to the long-term problem of poverty and homelessness in the United States, it is more useful to donate to charities that specialize in finding shelter and steady jobs for homeless people.

[P1] Panhandling is an easy, steady source of income. [P2] Receiving an easy income and living in dangerous situations reduces a homeless person’s incentive to save their money.