What should i do?

I am in the bus. It hardly moves;huge traffic. A little child of about age 5 or 6(obviously not more than that) gets on to the bus. He has a bunch of, some kind of leaflets in his hand. He starts distributing them to the passengers. One for me too. Then he goes to the front, leans on one of the poles & starts singing something (i didn't quite understand the words). Half a minute;He comes back and collects the leaflets. Oh!i've forgot to read it. He'swearing a T-shirt which is as 5 times bigger as himself. No slippers. His hand has a lot of wounds. I smile with him, just slightly. He smiles back; innocent smile. He just passes me and gets off. Probably to get into another bus.
The lady next to me says,"you're encouraging them to beg". May be because I gave money. I can only smile back. But I 'm thinking to myself, "Oh man,Did I??, well yes, she might be correct.., but I just couldn't help it". What if that little one gets beaten (or who knows what they do to them!), if he had no money in his hand at the end of the day. Obviously he didn't choose begging for a living by himself! he's so little. Can't even speak properly. What does he get to eat?Does someone sing for him when he sleeps? Does he get medicine when he is ill?
What should I do? Just feel sorry for him and ignore? Or put the blame on Poverty or War,which cannot speak for themselves, and just ignore? That little Child?