Integrity and Righteousness
"The Lord came down in a cloud, stood with him (Moses) there, and proclaimed His name, 'Yahweh.' Then the Lord passed in front of him and proclaimed: 'Yahweh--Yahwah is a compassionate and gracious God, slow to anger and rich in faithful love and truth, maintaining faithful love to a thousand generations, forgiving wrongdoing, rebellion, and sin. But He will not leave the guilty unpunished, bringing the consequences of the fathers' wrongdoing on the children and grandchildren to the third and fourth generation.'" (Exodus 34:5-7, emphasis mine)
Although grace is free and faith, which is also a free gift from the Father, guarantees salvation and forgiveness as pointed out in the first sentence of the Lord's proclamation above, the emphasized section also clearly shows that even for those whose sins are forgiven, there will be repercussion for those who continue in sin.
Notice the difference in Proverbs 20:7. "The one who lives with integrity is righteous; his children who come after him will be happy." Living with integrity is the quality of possessing and steadfastly adhering to high moral principles, or living according to the Word.
Will our children be happy or will they be facing the consequences? Or, maybe more tellingly, what are their present circumstances telling about our lives?