When I was a Nanny we visited Gram at the Senior Center for lunch one afternoon. Nanette was 2. All of the older ladies kept trying to give her dollar bills because she was cute. It took me by surprise and it was a very uncomfortable situation for me to be in and I kept politely declining while being totally stunned because I have never seen that before. Nanette kept whispering "Why are they giving me monies?"
ETA: After reading the other thread I know feel bad for not letting her keep the dollars as I probably offended the ladies indirectly
Leave and learn I guess! When I have my own kids I wont refuse any dollars
Anyhow, as a teacher with many students with allergies, I never offer any food item to anyone's child. If I want to do a special treat with food- which is rare because I don't believe in using food as a reward, but if I want to make something for a holiday, etc- I always ask the parent privatly first.
I would have just said "Thanks for offering, but they are a bit too young for lollipops." And they are for that type, IMO. Unless you are like on top of them to supervise. And I would have just kept on.