Let's say you were starting a new school from scratch. The taxpayers were going to provide about $12,000 per student per year. You expect to spend most of this on staff salaries, benefits, building rent, and all the normal stuff in a school...books, tables, wasabi peas, etc. How much, if any, would you set aside for individual kids -- or their parents -- to control?
I.e., so long as your accounting was super-tight (not easy, labor intensive), I'm pretty sure that legally you could let kids buy certain products or services that clearly advanced the school mission. For example, you could set up an "Individual Account" for each kid of $100 per year, $500 per year, $2,000 per year.
That money could be spent on: arts classes at the YMCA, piano lessons from the lady down the street, private tutoring or counseling, pleasure reading books from Barnes & Noble, museum trips, tennis camp, etc.
You could imagine another tier of individual investments: a savings account for college or job training.
And you can imagine a third category: groups of individuals could pool resources. That is, no reason that 15 kids couldn't band together and, say, hire a baseball coach and buy uniforms, bats, and balls.
Would you "protect" any money for individual kids and families to control, before you allocated the budget to normal school stuff? Because once the school starts spending, there's never enough.