Originally posted by Thac0:

When gifting a game to a child account, that game should prob be automatically added to the approved games list. It really frustrated my child to get the notification for the game, accept it, but then be unable to find it in their library.

Go to the library, select the game you want, right-click and select privacy for this game. All the best

Was your child able to accept a Gift? I found that I was only able to do that if I disabled parental controls. If you were getting notifications and were able to accept then that implies I'm doing something wrong and I'll check next time.