The important point here is how parents teach good character in managing finances. And I think both options mentioned by @Queentoshi are very situational. We need to see how our children's characters are. If our children do not understand finances well then you need to provide the second option where you limit your children from giving them something that makes them have to work hard. But if our children already have a good interest and understanding of finance, such as being able to delay gratification and understand about investment, then the first scenario is a wise choice. Because with enough money, children will have the opportunity to make money and compound interest by using the money we give. This will allow them to skip the stage of collecting money to immediately try investing. -CMIIW