In the Name of Allāh, the Most Gracious, the Most Merciful.
As-salāmu ‘alaykum wa-rahmatullāh wa-barakātuh.
As part of the tarbiyah (proper upbringing) of a child, parents must teach their children about love, kindness, and affection. The children will learn these characteristics when they see how their parents care for them, hug and kiss them, and always look out for their best interests. Such actions towards the children will instill these noble characteristics in them, as well.
Furthermore, the children will also observe the love between their parents in the way that the couple behaves with gentleness and kindness towards each other. It is not necessary for the parents to display physical acts of affection in front of the children. Children are smart enough to recognize the love and affection between their parents without ever needing to see them engage in physical acts of affection.
In fact, the parents should avoid displaying physical acts of affection, such as intimate hugging and kissing, in front of their children in order to instill the principles on hayā’ (modesty, shame) in them. Rather, they should focus on their akhlāq (character) and behavior with each other, as well as with the children.
And Allāh knows best.