What kind of impression is such Dad creating for his kids especially the male kids? How does he expect the wife to feel?
Disappointed as a father should be a good role model in the family, but what he did will affect how the kids looked to his father and respect. He supposedly should not get into this trouble. Much better if he takes a loan outside rather than touching the money.
What advice can he give his kids while he is not a good example at all?
Nothing, and instead of giving advice, he'd rather say sorry and choose to change his life to gain trust again and respect. Importantly, he will pay back the money.