We had a discussion, I got the names of the people she gave the money to and I will be contacting the parents in the morning. I also found out it was $80 not $60 from her. She said she did it because the other kids were begging her for the money. I remained firm but calm and told her no one should be asking anyone for money. You can't just give money away, especially when it is not hers to start with. I explained to her the gravity of the situation by explaining to her that I could get in serious legal trouble for this as I am the one responsible for her, the leaders could very well easily contact the police and have me arrested for theft. I could spend time in jail for this. That's when it got to her what she had done.
We are selling the DS and she will be working with me on the farm to earn the money back. She is also going to go before the whole troop and explain to them what she did, apologize, and say that she will not be back, at least for a while. She will not participate in any GS events for the remainder of the school year at least. She will be too busy working with me on the farm. I have shortened her free time and lengthened her chore list. Also she is grounded for a month with no TV, computer, iPod, nada, nothing, zilch. I think the point was driven home, now we have to stand firm and follow through.
She was sent to bed an hour early and she is currently asleep. Tomorrow I will be contacting parents of the kids she gave money to, hoping I might get *some* of it back.