Just as Laura said, I tell them that I don't carry cash, which I really don't. If you hear enough stories, you can tell the difference between a person with a rehearsed line being repeated and a person who really needs help. I will offer to buy the person whatever they are seeking, but I cut it off at handing out cash, for safety reasons.
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I used to give money to people, but not for a long time now. I can usually spot someone looking for a handout from a mile away. Every once in a while I get caught off guard. But, I never carry cash, so I never have anything to give even if I wanted to. I've offered to buy someone a meal, but they never accept.