Some people don't seem to understand that modern smartphones are only about 7 years old. Unless you were twelve 7 years ago getting an iPhone at that age wasn't even possible. You probably had things at that age that previous generations did not have either.
While this is true, I never owned a single item that costs $650 brand new, either. I think that's what has most posters raising their eyebrows. In the US, the cost of handsets is often hidden within plan costs so most folks only see $199 5s, $99 5c and free 4S. They don't really see the extra $25/mo or so that gets tacked on to their monthly bill or a total of $600 for 2 years. I reckon a hand me down iPhone 4/4S/5 is likely quite the norm nowadays, though.
Sure, game consoles are pretty close to iPhone MSRP. My parents never bought me those, either. If I wanted the PlayStation, I had to save my allowance and scholarship stipend.
Granted, sometimes they'd split the cost of high ticket items in half with me as a reward for good grades.
To answer the OP's question, I'd get insurance with theft protection. I've had phones stolen at school and one of those times, my bag was right beside me and I just turned my head away for a second.