Thou shalt not bow down thyself to them, nor serve them: for I the Lord thy God am a jealous God, visiting the iniquity of the fathers upon the children unto the third and fourth generation of them that hate me.

The parents hate God and deliberately worship a graven image and teach that belief to their children. God says it is an iniquity which BECOMES the burden on the children of later generations which also HATE God like their parents do. It seems to apply only to children who hate God.