While the iPod Touch is cheaper than the iPhone 7 is new, if you are thinking of upgrading to a new iPhone this year, your old iPhone may be a better option for a kid than the new iPod Touch.
The iPhone 7 is packing the same power and if you give this as a used device you don't need to connect it to a plan. It will work on WiFi just like an iPod Touch, but it can also call 911 from anywhere. A used iPhone will also grow with your child better if they are on the cusp of needing a cell phone. You can start them off with WiFi only and see how responsible they are and then add service if you think they can handle the access. If you have an iPhone 8 and are planning to upgrade to the 2019 iPhone, the value is even better for your kid and your wallet since they will have a phone with a lot of features for the foreseeable future.
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