I don't buy what you said about going into debt later in life, though. After college, we should work and be financially responsible. We should always be adding to a 401k or savings account, or whatever. There's a financial guru that my parents follow that offers some great steps:

1. Get $1000 emergency fund. Use this ONLY when it's an emergency (new clothes at the mall is not an emergency)
2. Pay off your debt. This is probably the hardest step (unless you're like my and don't have any).
3. Save 3-6 months of “living costs.” However much money you spend in a month, save 3-6x that.
4. Invest in Roth IRAs – I'm not very familiar with this but my parents are. Their stock portfolio, as laid out by Dave Ramsey, has been making a steady 18% (that's really really good)
5. College fund for kids
6. pay off your house
7. Give money to people who need it (charity, red cross, Haiti, etc)!

As for later in life, I totally see where people could use a little financial assistance, though. So many things come up and go wrong when you least expect them to. I mean, I see how many adults do abuse the finance system, but sometimes all you can do is get into debt.

First off buying a brand new car is NOT a good idea- it basically reduces the value by 50% when you drive it off the lot! Buy a hunk o junk cheap, drive it while working and saving, sell it and upgrade, etc. I'm in the process of doing that myself. My parents bought me an older car when I was in high school. The summer after I graduated, I worked and ended up selling that car and bought my new car (http://jeremybunner.com/blog/2009/10/02/cleanin...) with $5000 cash. Next step is selling that car and buying a newer, better one (probably after I graduate, tho).

And as for college, if you start saving early, your kids' tuition shouldn't be a problem. My parents are paying for my education and they started saving my senior year of high school (keep in mind their financial situation) so that's definitely possible. It just takes a lot of discipline.