Red Envelopes

Is there a custom of giving red envelopes in your hometown? What do you think of this custom?

In my hometown, not all people will give envelopes to others, most of them only give red envelopes when others come for the first time. But in my mother and grandmother's home, they will give red envelopes to all the children who come to their homes during the Spring Festival every year.

I think it's a good custom. on one hand, red envelopes means good wishes, good luck and good future. One the other hand, it can offer the children a opportunity for financing.

But some people think it's bad and the children usually use the money in the red envelopes to buy some junk food or toys. It's a waste of money.

What about your ideas? Can you tell me?