That's odd. My DD spent her Christmas money on (more) baggy sweatshirts, cheap earrings from Claire's and a couple trips to Starbucks with her friends. That's what she wanted.

Your friend is rude

Hurray for your DD writing thank you cards! It's a lost art.

But boo to your family friend's odd reply. My kids often say how they plan to spend their money in their thank you notes, I think it's a nice personal touch. Personally I'd ignore the friend's reply and carry on as usual.