Tooth paste with fluoride bad to eat, while water with fluoride fine to drink?

If I've understood correctly, tooth paste for kids and babies have less fluoride because they're more likely to eat it than to spit it out. Tooth brushes for babies even tend to have colored patterns in the brush to show you how little tooth paste you should put on for them.

At the same time, people keep arguing that fluoride added to water is really great? Water that everyone are drinking, on purpose?

So which one is it? Is fluoride bad to eat or not?

Or is it something other than fluoride in tooth paste that's bad for kids to ingest?