Giving a Homeless Person Money: What Do They Really Do With It?

Introduction: The Moment of Hesitation

You're walking down a busy street when a person experiencing homelessness asks you for money. You hesitate. A flood of questions runs through your mind: Will they use it for food or for drugs? Will this act help, or will it harm them?

This simple, everyday moment opens up a much larger and more important conversation about homelessness, generosity, and how we perceive those in need. This article explores what homeless individuals actually do with the money they receive, breaks down common myths with facts, and shares real-life experiences. Let's look at how your contribution, big or small, can make a genuine difference.

Key Takeaways

Essential Needs First: Not all homeless people misuse cash donations. Many use it for critical essentials like food, clothing, or transportation.
Stereotypes vs. Reality: Preconceived notions about homelessness often distort the truth of how donations are spent.
Empowerment Through Dignity: Direct cash assistance, when given with respect, can empower individuals who lack access to formal support systems.
Beyond Cash: Sustainable help often involves combining immediate compassion with support for long-term community programs.

1. Understanding the Daily Reality of Homelessness

Before we can understand how money is spent, we must first understand the world of someone living without a stable home. Life on the streets is a constant struggle for survival—a daily battle to find food, stay warm and safe, maintain hygiene, and hold onto a sense of hope.

Common and Urgent Needs:

Food and water
Public transportation fare
Phone or data top-ups to stay connected
Shelter or temporary housing assistance
Hygiene products (soap, deodorant, etc.)
Medical supplies or co-pays

When a person experiencing homelessness receives money, it's often a small amount. But to someone with nothing, even a few dollars can mean the difference between eating that day or going hungry, or having the ability to catch a bus to a shelter.

2. What Do Homeless People Actually Spend Money On?

Based on interviews and outreach work, here is a breakdown of the most common uses for cash donations.

A. Survival Essentials: Food and Water

The most immediate use for money is often food. Many use donations to buy inexpensive meals from fast-food restaurants, snacks from convenience stores, or hot food from local vendors. Hydration is also a top priority, especially in extreme weather.

"Most of the money I get goes to food. Sometimes I can get a burger or something to hold me over." - Anonymous Individual

B. Dignity and Hygiene: Clothing and Personal Products

Basic items like clean socks, underwear, deodorant, or baby wipes are crucial for maintaining health and a sense of dignity. Most shelters cannot supply enough of these items, and public restrooms are not always clean or available.

C. A Safe Place to Rest: Saving for Shelter

For many, the goal is to save up small amounts over time to afford a cheap motel or hostel room for a night. This is especially vital during cold weather, when shelters are full, or simply to get a safe, private night's sleep.

D. Critical Connections: Transportation and Communication

Bus or subway fare is often essential for survival. It allows individuals to get to:

Shelters and soup kitchens
Job interviews
Medical appointments
Social service offices

E. Acknowledging a Difficult Truth: Mental Health and Addiction

Yes, some money may be spent on alcohol or drugs. It's important to understand this is often a symptom of much deeper issues. Many homeless individuals suffer from untreated mental health conditions like trauma, PTSD, or depression, and may use substances to self-medicate. This is a cry for medical help, not a reason for judgment.

3. Busting the Big Myth: "They'll Just Use It for Drugs or Alcohol"

This is the most common stereotype, and while not entirely baseless, it is an oversimplification that harms our ability to help.

Myth: All homeless people will spend cash on harmful substances.

Reality: Studies show that while a portion of the homeless population struggles with addiction, it is not the majority. Furthermore, giving cash directly does not necessarily lead to an increase in substance use.

Research Insight:
A 2017 randomized study by the University of British Columbia gave a group of homeless individuals a one-time cash transfer of $7,500. The findings were remarkable: participants spent fewer days homeless, increased their food security, and did not increase spending on alcohol, cigarettes, or drugs.

4. The Hidden Impact: The Power of Trust and Dignity

Giving money is more than a financial transaction; it's a message. It says, “I see you. I trust you to make choices for yourself.” For people who are constantly ignored, judged, or treated as invisible, this simple act can restore a vital sense of humanity.

"One man used the $10 I gave him to print out resumes and apply for janitorial jobs. A week later, he was working and off the streets." - Shared by an Outreach Worker

5. Unsure About Giving Cash? Effective Alternatives to Help

If you feel uncomfortable giving cash directly, that’s perfectly okay. There are many other powerful ways to provide support.

Create Food & Hygiene Packs: Assemble simple kits with non-perishable food (granola bars, fruit cups), bottled water, socks, and hygiene items.
Offer Gift Cards: Small-value gift cards to grocery stores, pharmacies, or local cafes allow people to choose exactly what they need.
Donate to Local Shelters and Organizations: These groups have the infrastructure to provide long-term support, including housing placement, addiction treatment, and job training.
Volunteer Your Time or Skills: If you can offer job leads, a ride to an appointment, or simply your time at a soup kitchen, you can make a life-changing impact.

6. Voices from the Street: Real Stories, Real Needs

Marcus, 29: “I slept in an alley for six months. People think we don’t try, but I saved every dollar I got to get a phone so I could contact my kids. That changed everything.”
Layla, 41: “When people hand me money, I use it for clean clothes and baby wipes. I want to feel like a human again.”
Josh, 54: “Yeah, I’ve used it for booze. I won’t lie. I’ve got problems. But some days, just getting something hot to eat makes me feel like I can try again tomorrow.”

These voices show the complex reality of homelessness. Each person has a unique story, and every dollar they receive serves a purpose we may not immediately understand.

7. The Ethical Dilemma: Navigating Your Internal Conflict

Giving money directly can raise difficult ethical questions for the giver:

Am I enabling harmful behavior?
Am I encouraging dependency instead of a real solution?
Is this act truly helpful, or is it just a way to ease my own guilt?

There are no universal answers. The key is to approach the situation with compassion, not condemnation. Sometimes, a small gesture of trust is all it takes to reignite someone's faith in the world and in themselves.

Conclusion: So, Should You Give?

Ultimately, whether you give money is a personal decision. But understanding what homeless people actually do with it can help shift your perspective from one of fear to one of empathy.

If you feel moved to give money, do so without strings attached.
If you prefer a more structured approach, support local organizations or assemble care kits.
Whatever you choose—choose compassion.

The money you give might feed someone today. It might help them buy a toothbrush to feel clean for a job interview. Or it might just give them one more reason to keep going.

Instead of asking, “What if they spend it the wrong way?”
Perhaps we should start asking, “What if they spend it right?”