People who live off other people (vivir a costa de) are sometimes called leeches (sanguijuelas). The verb is leeching off someone (sangrar a alguien).
We also use sponging off someone.
He's 27 and is still sponging off his parents. What a leech!
I don't know if this is the same as vivir del cuento, though, but it sounds close to what you described.
What poli wrote is also correct, because these people are just passing/walking/sailing through life without any desire to work hard and make something of themselves.
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