When I walk the schoolies to school (so 5 and up), I don't hold their hands other than to cross the road - unless they want to, sometimes they just want to hold my hand and chat. If they were 3 year olds, and we were going on a waling excursion somewhere, I'd hold the hands of the ones I know aren't trustworthy! I guess parents know their children's 'levels' of understanding.
If it were in the city though, I'd be a bit more panicky!
We still hold DD's hand to cross the road or to go through the carpark. It's usually initiated by her - she'll just reach up and hold our hand or hang on to our clothes.
We are in a pretty quiet area (except in summer holidays) and we don't hold her hand when just walking along the footpath. She knows to stop one join back from the road if she gets a bit ahead of us. I think it comes down to how well you feel you understand your kids too. Unfortunately, she takes after DH and I and is super sensible. My niece however...... she takes after her mum and she'll still be getting distracted walking across the road at 15!!
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