I still work, but I'm not in the same position as the OP. My DC are in their mid/late teens. I'm also a widow, so I only have myself and my DC to consider. But thought it would be worth sharing a real-life situation anyway...
I received a seven figure amount in compensation for negligence relating to my husband's avoidable death (I have told no-one about this in real life, and fortunately the last-minute out-of-court settlement kept it out of the papers), and a high six-figure sum from his life insurance payout, as well as just over a million pounds from his pension.
My house is in a nice area of South West London. It is worth around £3 million, which is normal for the area, and we had paid off our mortgage a couple of years before DH's death (the house was bought a long time ago before London property prices went crazy, so it wasn't a huge mortgage and DH's job was well paid).
I have invested just over £1 million from DH's pension in stocks and shares (a medium risk managed fund), that has so far yielded around £120,000 per year without me touching the capital. I have a lovely holiday home in a very desirable location which is worth around £700,000. And I have bought both of my DC a house for £500,000 each (small, new-build, neighbouring houses of identical design that are currently rented to tenants at £1,750 per month for each house). I will transfer the houses into their names when they are 25 and they can then sell/let/move into them, as they choose). This is so that they will benefit directly from the negligence compensation money, as they deserve to be compensated for unnecessarily losing their lovely dad in their early teenage years. They don't know yet that his death could have been prevented and that compensation was paid - I will tell them when they are adults. They don't know about the houses yet either.
I keep around £300,000 in total in normal bank accounts, for quick access (two in the UK and one in the country where my second home is). I use this money for living expenses, home improvements and maintenance for all four properties, and for holidays. This amount stays around the same level as it is topped up every month by the rental income and my salary.
I drive a six year old small car and work 4 days a week in an admin role with a salary of £35,000, which I have done for the last 10 years. I had a highly paid career before the DC came along, but my current, low pressure, job is much more family-friendly, and it's a fun sociable place to work.
I think it's important for my DC to see me working and 'providing' for them, even though I don't actually have to work. They both attend the same non-selective state school, and I love the fact that there is such a wide range of socio-economic backgrounds within in their friendship groups, so that they don't grow up in a privileged, entitled 'bubble'.
I will carry on working until I'm 50, by which time my youngest DC will be at university, and then my long term plan is to spend more time in my second home (where I also have a lot of friends). I like writing songs as a hobby, and would love to have more time to do this when I stop working. I would also quite like to write a book.
Having money has given me the freedom to live my life however I want to, which I appreciate every day, although I would much rather not have the money and still have my DH.
I had a very happy marriage, which I am grateful for, but I will never get married again. I value my independence too much. I also need to ensure that all my assets go to my DC without the risk of anyone else having a claim on them.