We got our granddaughter one when she was 11, and yes, she has lost a phone, but so has her mom. She lucked out and got great-grandma's old phone and some strict instructions. She's very responsible for a kid and she still lost it. I don't care though, because it has come in handy quite a few times, not just for her but for her friends too. Kids miss busses and wires get crossed and she can always call.
I love capitalism!!!!