You are right to make him pay for and work for things. I went to private school growing up and saw everyone else getting new cars and everything paid for by their parents. I am glad that my parents didn't just give me things "because everyone else's parents bought them one!" I feel like I have much more of a work ethic and more of a sense of financial smarts than most of my friends.
I think the average teen abuses cell phones too much. Once they start driving, it is good to have a phone on hand for emergencies. grandma needs to understand and respect your wishes as his father.
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