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Children don't need their parents to be their friends. That's what they have peers for. A family is one place where a hierarchy is not only appropriate, it's ideal, as children need guidance, limits, and consequences as well as love, care and nurturing.
Whether at home, at school or at work, over-entitlement leads to selfish, insensitive, lazy, even defiant behaviour. Children, students and workers who are coddled and treated too permissively tend to aggravate their siblings, fellow students and colleagues, and are far less productive than they're capable of being.
If children learn healthy limitations, they appreciate what they do get that much more. Sometimes creating something instead of getting something is the best gift of all. They learn to be self-limiting, yet open to infinite creative possibilities.