If she is 12, she is old enough to understand a budget. Have a frank talk with her and let her know that if she honestly and truly wants that iPod Tough, it will be the only thing she gets.
DS has Asperger's and understands a budget and could at that age.
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I agree. My DD12 is asking for an iPod Touch for Christmas as well. She is more than old enough to understand about prices and budgets!
I've told DD12 that if she saves half the cost of the iPod Touch - I'll give her the other half of the money as our Christmas gift to her. We will probably buy it for her outright, but in the meantime, she'll learn the lesson that (a) money doesn't grow on trees and (b) sacrifices must be made to get what you want in I'm life! She's working 2 hours a week with a friend and I am hoping that my you-save-I-match proposal will encourage NOT to fritter away all her money on junk food and junk jewelry!