Hard questions to face, as a parent. Ultimately I plan to draw a clear distinction between my money and theirs. The world will look so different even in the 8 years between now and when Henry finishes his schooling. I don't imagine my kids will have 'expensive tastes', to be honest I think a lot of that spending comes from a place of emotional insecurity.
Many of those second-generation wealthy are quasi-orphaned by all that hard work; then try and spend away the void that left behind.