Where does one draw the line?

I look around me, at my own child and at children around me and think gosh! they are very lucky kids in every sense of the word- or are they? When we give them all that they need want dream or even before that are they lucky or are we crippling them mentally and emotionally. Our children do not know what it is to need which is great but they do not know "want". When I say that I mean that they get things before they know it even exists. In a way we are taking away their ability to dream about something and work towards a goal. Living a privileged life is great but if that takes away basic survival skills that is not the best life to live. I worry for my child because even if I stop buying the stuff she still gets it from the host of uncles and aunts and cousins and friends. Where does this end? How can I teach her that one need to work for a goal.