As a strategy for decreasing poverty it blows accepted stuff like the minimum wage and workfare out the window though.
Telling people what they can spend their money on (your second point) even if it given to them is just another tactic of hating the poor for no reason. Yes, drugs are a concern as is ensuring children, if any, are nourished, but if they prefer a Play Station to food, you can't really stop them. Nor should you tell them what is best for them.
Children do muddy it up, but yes, a food card can coexist with it.
And this. Irt children Brazil does it best, by linking Bolsa Familia with school attendance. not that it didn't stop conservatives there crying that the poor would just spend all the money drinking.