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He saved the money so therefore his choice. I am with 10-16 year olds every day at school and 10 is old enough to make adult decisions. However the parent knows their son better than all of us. Either way, you both win, no matter the size.
We teach kids to learn to make decisions. Part of making decisions is understanding the possible consequences of those choices. What would be the negative consequences of buying a new iPad mini vs. a used iPad 2?
With a new mini, he would get a new device with a full warranty, newer guts and better screen, better camera and more features, like Siri. It's also a lighter device.
With his dad's iPad 2, he'd get a bigger but fuzzier screen, a used device with limited or no warranty, a lesser camera and no features like Siri. It's also a heavier device.
This question seems like less about encouraging a child to make smart choices (and exercise preferences) than a parent who wouldn't mind having an iPad mini for himself.