When I see this claim, I usually take it to mean something like "handouts make people poorer in the long run because they inculcate learned helplessness and remove people's incentive to take control of their own financial destiny".

Which is also an odd assertion, considering that the more free money a person gets from their family in the form of adequate housing, nutritious food, tuition fees, etc., the more likely they are to become an entrepreneur or a highly-paid professional.