Not sure if this is a first world problem . Who gives their kids iPhones and credit cards . Maybe give the kid Lego next time . I made a big purchase once when I was a kid guitar amp $ 400 . My mom lent me some of the money to go with my savings . We put an index card on the fridge with the total . I did odd jobs , shoveled snow , and every time I paid back a few bucks , we would cross out the number and write in the new total . It was hard work , but it felt good watching those numbers go down , and it taught me a valuable lesson . So in your situation , you might want to let the parents have a chat with the kid , and explain how this loss is going to impact their budget . This was vacation money , this was holiday money , this was school supply money , which is now gone . The kid needs to learn how their actions impact the family as a whole .