Giving them money will first make them feel ecstatic and excited at first. Imagine having a lot of money in your hands is such a good feeling since you can buy everything you need. But soon, they will feel the burden that comes from the money they quickly obtained without doing anything.
If malicious people in the street see them holding a lot of money in their hands, they will surely steal it from them and it can hurt the children in the process. Even if they can avoid these people, someone can also accuse them of stealing it because in their eyes, it will be impossible for children like them to get that money. The people who live in the slums and streets are more cunning than expected and they don't spare even children. Penelope knows by experience that most people can do anything worst for the sake of money.
"If we give those children something to do, it will give satisfaction to themselves. We can also teach them to be responsible in the future."
"I see."