It's good to discipline a child at an early age especially on matters concerning money and spending it. As much as possible never give money to a child, just give them toys instead. When it comes to tantrums, it's good to give in once in a while. But if you do it too often, you might have troubles in the end.
I also think how parents model is important too. If we keep buying many luxurious things, kids might follow the same way, though we are the ones who worked hard and earned the money. Kids always watch how we do and then they follow. So, I think if we would not like our kids to overspend or buy something not necessary, we have to model that too.
Knowing how to say no to children is essential to their growth. There is no reason to satisfy all their desires, especially in the moments they want. This is a totally wrong way of disciplining them.
I agree with you. I am the same. I can't see my kids crying, but I do try to distract them so that they forget about what they are crying for. In most cases I am successful, but sometimes I have to give in. It was only once that I let my son cry and did not give him what he wanted. He cried for say 5 minutes and then he forgot all about it. But that is not the case with my daughter. She doesn't forget things very easily and will keep on demanding until she gets it.
@anupamas2 That's what I wanted to say. Sometimes the situation becomes so complicated especially while you are in a store or walking through a mall and your child starts demanding for something you sure don't want to be center of attraction by refusing constantly. I have seen such cases in different shopping centers when I had to give in or carry the child forcefully.