My little brother (through a different mother) is a trust fund baby. He's the epitome of what you've described here. I believe having a wealthy mother has done him far more harm than good. He has a college degree, but has not done much with it. He smokes weed and lives in a townhouse subsidized by mom.

I lived at the poverty line when I was raising my kids, and in retrospect, I don't regret it at all. My kids are hard workers who respect the possessions they have. I hope they have it a bit easier than I did financially starting out, but I can't say I didn't learn a whole lot during those years! I hope that they find passive income long before I did, but I also hope that they never take money for granted.

I suppose there are pros and cons in all of life's experiences, but not having everything your heart desires at all times probably has more cons than pros.