I myself live by rule that unless I have reasonable impression that money I give away will be misused, I should give money to person. However I am a student, I am by no means rich neither do I have enough to give to others all the time… yet nothing I have comes from me but belongs to God. However, once I see someone like that smoking or drinking, I stop giving them money.
When I was very little child, my mum and me would occasionally buy newspaper from guy who obviously did not have home at the time. We would leave him with a bit more. Said newspaper agency employs such people and helps them… and now, 10 or more years later, that guy probably has his own place, looks very clean and pretty normal. But I will never forget how he started and tried his best, neither his teary eyes when he received money.
I have also been “scammed” many times and saw people misusing money I gave them. But I did my part- sin is not mine and I didn’t know I would just give them ability to sin. But I make sure I never repeat it. I guess giving money to those who try their best to do something to earn it would be wiser than my current method though… so I might change approach.
Still, there were few occasions when I somehow lost or wasted money I needed for something important as kid, and I was helped by random people most of the time. It was just bus money or once 2€ to pay for pizza in restaurant (ironically I gave 2€ to deaf people and then was short on money to pay for our order… ), insignificant for those people… but it did really help.