Yeah your kid probably wouldn't have felt the 'blow' if he didn't work for that money.

The problem isn't virtual items, everyone pays money for non material experiences/services - and on a long enough timescale even material things wear down/break.

The important thing to teach a kid is if the value they derive from buy a skin eg. and whatever it brings to them (happiness, bragging rights) is more important that opportunity cost of paying for that.

If the cost is always zero (daddy pays) - then the kid will not stop to think about it ever.

Something about telling a kid that the iron is hot vs the kid needing to burn himself to learn.