In my classrooms and at home we use non custodial lightning wallets. We talk about layer 1 vs layer 2 and the trade offs. For small amounts and for conducting trade in our class marketplace lightning is much easier, but students are taught the risks and the not your keys not your coins mantra.

At home, my kids hold their own keys for their savings. Students and my kids are never given money, they have to earn it by creating value.