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Should I upgrade my kid's iPod Touch, even though it works fine?

High-end gadgets have become status symbols among kids. But even if they feel like every other kid has the latest and greatest, it's simply not true. Plenty of kids get by on older technology.

Peer pressure can be stressful, though, and, although it may seem silly to you, it's real to kids. They need help learning how to delay immediate gratification, resist peer pressure, and even understand the value of new devices.

Consider creating a timeline or identifying a single significant goal to achieve before your kids can upgrade. You also can pass along your old device when you upgrade (it'll be new to them) or simply set up a strategy for them to save money for what they want. They may give you a hard time, but they'll appreciate the device a lot more if they work for it or have to wait for it! And if it's something that's not in the budget, you always have the right to say no.