Ah yes, you love your children very much. Now it is time to teach them that "Things" do not make us happy.
When they do not pick up their toys once you have asked them? You pick them up and they go away.. They will probably think you cleaned up their rooms.
You decide it they ever get them back or not. See if they even notice that toys are gone. Do not mention it to them. If they do notice tell them "because they did not pick them up as you asked, these toys are in "time out". They can get them back by helping with a chore."
Then remind them the next time you ask them to pick up the toys off of the floor, that if they are not picked up, they are going away.
The bed situation is no biggie. If she does not like her bed? She can make a palate on the floor of her bedroom. Our daughter went through a phase where she did not want to make her bed anymore, so she slept in her sleeping bag on top of her made up bed. She just had to roll up the bag and place it in her closet! Genius solution!
Quit purchasing them anything unless it is a "gift holiday." Do not continue to willy nilly purchase clothing, decorative items etc, unless they really need them. I know parents give their children gifts for good grades, but we gave hugs and high fives.
When you give them so much, of course they take it for granted, that this is normal. But when they have to earn things that they want , they appreciate things and they put more thought into it.
Instead you need to teach them to not be wasteful. If they want something new, they need to get rid of something, better yet, donate it so others can get use from it. Bag up things and have them help you unload it at Salvation Army, Goodwill.. wherever there is a place that provides clothing, toys and books to underprivileged children,
When they need something take them to shop at a thrift store.Or tell them they can only shop the "sale" racks. Or only purchase with a coupon.
Go to a thrift store or resale shop. Give them a few dollars and tell them to look for a new shirt, a pair of pants.. Many times people donate things that were never worn, that were only worn a few times and then outgrown (sound familiar) so this is a good way to also be a good steward of our planet. They will see that brand new, really is not that important in many cases.
Model this behavior by also shopping carefully. Show them you actually wore out a pair of shoes, handbag, pants.. whatever, so they will see you are also willing to purchase slightly used items or very discounted items.
You are over compensating for your childhood. But in reality, your childhood made you who you are, successful and hardworking.
Your children could do well with a realistic lifestyle. We have to work for what we have. Do we really need the very best? If we are only going to wear it a handful of times or play with it a few times? Special holidays are about being together. Not having more stuff.
Time together as a family is worth more than anything else. Do not use your guilt as a reason to give things to your children. A play every once in a while, maybe 2 times a year unless it is free, is enough . A trip to the zoo, once a year is more than most people ever get.
A vacation of staying home and going around town to enjoy your own city is amazing. Camping in your back yard is priceless. It is the time spent together that did not cost money that will be best for them. Experiences and opportunity to earn things makes them more personal.
Time to start volunteering as a family. For the Thanksgiving holiday find a way to provide a meal for a family in need. During Christmas, adopt a family and provide each family member with gifts . Maybe a meal also. Have your children come up with ideas and solutions.
My husband and I have sold our home. People are shocked that we are not going to purchase a bigger "nicer" home. We told them, we do not need a bigger home. We do not need a fancy neighborhood. We have each other and we can make friends anywhere. Just because you have money, does not mean you have to spend it. We have lived on a tight budget all of our marriage. Times when we only had $10. till payday. We made it through by not being wasteful. We are appalled by all of the stuff we have accumulated, but we are noticing, lots of it we purchased at garage sales or people offered it to us. We will now be passing these things to others.
Hit the reset button on your life. This is your opportunity to start down a new path for you and your children, Allow them to earn the things that they want. It will be in their control and you will learn what they are willing to work towards and really want. Do not back down on the goals that you set for them, or they have set for themselves. Instead brain storm with them how they can accomplish their goals.