The older ones should understand. It's not good to give more than you can afford. I'm sure my parents did that when we were younger. They shouldn't have, but they felt they had to. Now they have a strict budget. The grandchildren are all grown, so they understand if they don't get much. My parents now focus on the great-grandchildren (two with one more on the way).
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Yes the older ones should understand. I think that when they are young, they get so used to us giving even when we don't really have it, that they suddenly look for it as if they're entitled to it.
I'm glad our kids have learned differently. when I can I give more but much like your parents I give to the younger ones first and the others if I have it.