I think it’s all about scale of income. A billionaire can buy her kids Chanel and Hermès from when they’re in diapers simply because she can. People can judge but in the end it’s their wealth, it’s what’s normal for them and what they choose to do with it. Also, they mix in circles where such displays of wealth are seen as pretty much normal. From what you said about your financial status, I would say no to buying your kid Chanel. For a kid who’s going to boarding school, you don’t want them to stand out. They’re tricky years and you don’t want them to end up hated or bullied for it. Plus it’s a slippery slope: if you want her to fit in with super rich kids, one Chanel bag is never going to cut it. 6 months later it’ll be Hermès, then a Porsche. Instead I would say ask her to save up for the thrill of buying it as a present for college graduation or a first job. I’m sure she’ll do great at the boarding school, just ask her to savour her carefree childhood years as long as they last!