On one hand, he’s still getting $500. On the other hand, that money was supposed to be a gift.

When you’re young, it’s easy to be incredibly juvenile about money. If you have it, you spend it! If you have the money to spend on it, you can certainly afford it! Young spoiled kids have little to no sense of how much work (or dumb luck) goes into acquiring a large sum of money. They might have a rudimentary understanding that the way to keep money is not to spend it, but they lack the discipline to put it into practice. 

Some parents choose to spend a lot of their hard-earned money on their spoiled rotten kids, and that’s their prerogative. You might think it’s asinine for your coworker’s daughter to have 50 American Girl dolls, considering that’s $5,000 that could go towards her college fund. The truth is, even if you do set aside money for your kids for practical reasons, they might still resent you for not giving it to them without strings so they can have «fun» with it. It often takes an adult set of eyes to see that every extra bit of money your parents ever gave you was a gift, and it was not a guaranteed thing.