Parents what would you do in this situation?

It is not at all illegal. Not to say anything rude but if you live in Cali I wouldn't be letting a 10 and 8 year old walk to the store alone. You should be proud of your son. It's not many people, let alone children, that will give to the needy and befriend them. If you ask me, that means you must be doing something right. Haha that's a husband for they. They never make the situation any better!