For sure there has to be balance. I've had a lot of time to reflect on savings, earning, spending and the impacts each has on your quality of life. Particularly because I have kids, it makes sense to me to ensure a certain quality of life for them right now, vs scrimping so I'll have a nicer car when I'm 70.
That being said, quality of life and dollars spent aren't the same thing. A lot of things that are very cheap can be very fulfilling and rewarding for kids and adults.