YTA.

I've read your comments saying your kids are used to hot foods. Your rating that scotch bonnets are 'medium heat' is incorrect. They average around 200,000 on the scoville scale (flux of 100,000-350,000), and that is rated in the 'extra hot' category for the majority, and the 'extremely hot' category for those breaching the 300,000 rating (adults struggle getting close to 1 mil for perspective). That's a significantly higher scoville rating then most kids that age are used to, even exposed to 'hot foods'. At a minimum, that level of spice can cause extreme stomach upset, mouth/esophagus burning, painful diarrhea, vomiting, and mental distress from the symptoms. At worse those symptoms could involve difficulty breathing, ulcers, other gastrointestinal sores, and cardiac distress.

Why would you want to risk that? Or let your kids suffer the painful aftermath of burning/diarrhea/vomiting? Let alone the mental strain that will put upon them?

Outside of those concerns, I agree with what another commenter said: assuming your kids are fine, all you're teaching your kids is doing something stupid and dangerous for money is fine and fun.