Depends on what you mean by higher standard of living I guess?

I've seen kids with all these electronic gadgets and game consoles etc, and it deprives them of their family time in some instances (not all times though), the best clothes etc, but at the end of the day I feel the most important things for kids is to feel loved. And not to feel love through presents and having 'the best' of everything - but to feel it from attentive and caring parent/s (and siblings), going to the park, reading books, playing sports together as a family etc.

DH and I are sending the kids to private school - thats our 'splurge' if you like on them, as we feel this particular private school reinforces our family values very well.

This may mean that we can't afford to have big family holidays, instead we'll just hire a shack up the river or something - but the kids will be still gaining life experience no matter where they go. I still plan to do the 'hand me down' clothing thing with bub #3 when he/she comes along, but instead of having toys as pressies - god knows we have enough, we always ask for clothes if ppl want to know what to get the kids - so they can still have 'new' clothes of their own.