I don't understand why you wife asked you to relent on your budget while the kids were present. She must have known they would side with her as not many children are fond of austerity programs. She should have realized what an awkward position that placed you in. You and she definitely need to talk about that, get on the same page financially, and present a united front to your kids.
By the way, it's ironic that wifey blindsided you right after "church". I thought that's a place which promotes "family values" and a de-emphasizes materialism. It just goes to show what religion purports to do, but really doesn't, because it can't.
JW, You seem like a straight-ahead, principled guy. Remind your kids why you're not being a spendthrift, and as SCRF illustrated, there are a lot of free to inexpensive activities in which your family can get involved and enjoy. Keep setting the example, and maybe your children will grow up to be as responsible as you are.
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