I agree that we're in a completely different time, but then there's no need to spoil your child. You're setting her up for a big fall when she enters the real world and actually has to pay for things for herself.
Stand outside a school getting out in NYC and you'll see about 80% of the students with cellphones pressed to their ears or being used to frantically text all their friends.
Yes, the cellphone has replaced the pencil-box.