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I think people are missing a few key points here.
First off..many many times the kids are encouraged to put down whatever their WISHES are. They don't often say "make sure it is under X amount" or that it is only for practical items or learning items. No they tell them to put their wishes out there..it does NOT mean you must buy what is put on the list by any means.
Also these are children..do you think they are saying "well gee...socks and underwear are the practical things I need..I will ask for those". No they think "I really wish I had the same Wii game my friend at school has" so they ask for that.
When I donate food or toys or do an Angel Tree child I don't decide what they should or should not be asking for or speculate or assume that other things should be done based on little information. I look at their choices, if they exceed my budget I find something reasonable for their age group within my budget and buy it with a gift receipt. If they have it, they can return it. A wish list is just that..a wish...not a requirement or demand.
I'm Catholic..my faith teaches me to go and do for others..to help them if they need clothing or food or shelter.
It doesn't teach me that they have to justify themselves, their needs or their situation before I consider helping them.
Of course people work the system..it happens but should a family in need be discounted based on assumptions and speculation that they shouldn't have things or Mom should be doing something else (and these assumptions being made based on nothing more than the blurb that came with the family information) or should they just get help?