My kids had iPhones at a young age too. It was cheaper to buy last model phones (with no service) than iPod Touches. Not that OP has to explain what they buy for their kids.....my DD has two obscenely expensive bats. She also wore a $20 formal to her first formal dance this weekend. I think being on this forum sort of stipulates to the fact that we all spend money on something that some other folks would find ludicrous.
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