How do you deal with panhandlers?

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Do people on the street ask you for money when you walk by? Do you give it to them? Have you ever had to deal with agressive panhandlers? There are a lot of panhandlers downtown where I live, on any given day there's about 5 people in a 7 block area. There's one kid in particular that I will cross the street to avoid, only because he's a hardcore drug addict of some kind, my spouse and I have seen him high beyond belief, rocking back and forth, frothing at the mouth, mumbling with his eyes closed STILL asking people for change. I've seen him argue with a woman who refused to give him anything, that was scary. Once I was walking past a Tim Hortons on my way to a doctors appointment when someone asked me for some change, I told him I was sorry, that I didn't have any change (I really didn't!). He said to me "I can hear it jingling in your pocket". Uh!!! That was so rude in my opinion, I was lost for words. Infact, it was my keys that he could hear in my pocket. Another time there was a different man in the same spot with his dog (I think they do that for sympathy, sit with dogs and children - it's so sad) so I asked him if I could go get him some dog food. Sure he says, what kind I ask. He told me Pedigree chicken and rice (ooh, the panhandlers dog eats high quality food!). So, I go into the grocery store (out of my way mind you) and buy him a can of dog food. I take it back to him and he tells me that his dog can't eat that food, it makes him sick. What?!?!! I got the kind he asked for, he tells me he needs the dry food, not the wet stuff. Yeah, I'm not going to buy a complete stranger a $20 bag of dog food, I'm sorry. So I end up stuck with this can of dog food (good thing there's lots of dogs in my apartment building). Oh yeah, a week later I saw that same man inside a convenience store and he was carrying a case of beer. He can afford beer but sits on the side of the street asking us for our loose change so him and his dog can "eat"?! I've had other experiences as well, mostly good ones, those two were just my horror stories of dealing with panhandlers. I've given food, drinks, hats and mittens, and even my jacket one time to people on the streets. I buy those McDonalds coupons that they sell around the holidays and I give those out to people too. I never give cash just because I don't want to support someones bad habits, but if I can go into a store and spend $5 to stop someones hunger pains, I'm willing to do that. How about you??