I think it's reasonable to ask an older grandchild to choose what they want for lunch out of options you have available. I also think that it is fine to let them choose between activities which are cost free or very cheap. I prefer to spend lots of time with my grandchildren rather than lots of cash. I often say no when we are out, though I will splurge on an ice cream or a magazine quite often. I don't seem to need to do more than say no firmly. They're used to me now 
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