LaughOutLoud
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I might not have a teenage girl, but I remember being one and for sure, I would not have expected to receive any gifts if I had done the same. There are ways to remind that child that you still love her without giving a gift at Christmas. I do agree that counselling might be a good idea for the girl as I do wonder what led her to do it.Honestly, you should get advice from a professional counselor. Understanding how teens think and act and how to respond to them is seriously complex. People whose kids are 3, 4, 5 years old simply have no idea what it is going to be like to parent a teenager. It is a delicate age, all the more so because you only have a few years left to parent them. It's terrifyingly high stakes. I really feel for you.
IMO none of the money should be repaid by you as a "gift" to her. Therefore how you treat her at Christmas is unrelated. I'd remind her that she has the option to return or sell her gifts. Personally, I think all the money should be repaid by her in cash, not chores, but you know the situation best and it may not be possible for her to earn cash. I understand that it is probably necessary for you to pay her boss back right away so technically she is paying you back, but I would really try to work out a way for as much of the money as possible to go directly from her to her boss.
Leaving her out at Christmas sends the message "You have messed up so badly we are no longer treating you the way we treat the rest of our children." Is that a productive message to send her? I think you run the risk of her giving up on herself and making "being a bad person" part of her self-image. I've been a mentor for homeless teens, you do not want her to give up on herself. You want her to understand that she is better than how she acted and empower her amend for her mistakes. And yes, it was a mistake-- a serious mistake with life altering consequences, just like using drugs, having unprotected sex, getting into a car with a drunk driver and a dozen other serious mistakes teenagers make everyday because they lack the neurological maturity to understand the gravity of their decisions.
I really urge you to get some outside support from someone with professional expertise working with teens. This is such a difficult situation, you owe it to yourselves to get some help with how to deal with it.
Ditto