When I was a kid, my Dad and his parents owned a farm. It is now classed as a small holding, due to the fact that there is less than 50 acres of usable land. As soon as I was big enough, I worked on the farm, picking up potatoes, planting, etc. I didn't get any pocket money, just wages. Only a small amount, but money that I could do what I wanted with. To start with, I spent it on sweets (and what child wouldn't), but as I got older, I'd save up and buy larger items, such as clothes. My first car was funded from savings (£60 for the car - held together with duck tape, baleing(sp?) twine and GB stickers).
The farm no longer grows anything. My parents live there and get a small income from renting out the sheds left standing. They can't farm it themselves (getting close to retirement) and the fields are too small to rent out to others. They can't even build on the land (to reduce the "housing shortage") as the late-comers to the area "don't want any more cars going through the village".
Nowadays, the majority of kids don't seem to have to do anything to get pocket money. Not even chores around the house. If kids get the idea that it's a good thing to live beyond your means (consistantly borrowing money to fund your lifestyle) and don't have any concept of budgeting, then I can see the economy becoming even more boom and bust.
In other words, as long as people borrow money for *everything*, then I think we'll see bigger boom and bust cycles further down the line.