I believe it is up to parents whether the kids are spoiled or not. If you just give them a credit card then you are spoiling them. If you give them a monthly budget that they have to stick to, then you are teaching them how to manage money and that they have to live within their means of support. That means that if they spend too much this month, they will suffer the consequences next month, and that if they want things they will have to budget for it. That is not being spoiled. In addition, if their parents don’t fly them in for every simcha, that is masir nefesh in a sense. So it is up to the parents to teach them the give in take for the privilege of “learning” in E”Y.
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