I haven't read all the posts--first I think she is a sponge, the more you give the more she will want/take. Second, what type of adult would want their children to know they were bumming money from the neighbors??? She has more than likely borrowed, begged etc from all her family, close friends, and even those that just know her--to the point that everyone is starting to say no so she has moved on to you!
Telling sad stories to get to your 'weak spots' or sending the kids over..
I would go over there the next time the kids come-a-knockin and say "I just wanted to let you know that the boys/kids are asking for money and I didn't know if you knew it. I have loned them X amount and I don't have any more to spare. I will not be giving them anymore and would appreciate you not letting them ask. And walk a way. This is what we had to do to my dh's nephew---we had to face to face tell him NO more. He had his wife, his grandmother and his daughter ask for money from us. All the time saying I will pay you back on Friday/next week/a little along the way. After he put his grandmother (My dh's mother) up to asking for more money.. I told her NO, and that she was not to ask again. Then I drove to his house and told him that we didn't have any more money for him and that he was not to get others to ask...he played dumb --like he didn't know what these others were asking for!!! He is a druggie. He and his gf have kids that they have lost to the system, she drinks anything and everything and does drugs. It's sad but I will not support their habits!! It's been 7months and he hasn't asked for anything..Dixie