7 year old stealing

Question

Recently my 7, almost 8, year old son has started stealing money from my husband and I.

As a small child,3 and 4, he would play with money from his piggy bank and loose it, so we held on to the piggy bank for him. After about 1 year he got it back. we took him to the bank and opened a bank account for him and deposited all of his money. When he receives money as a gift at his birthday or on a holiday, tooth fairy etc, I hold on to it. We purchased him a wallet that i carry for him. We are not poor nor is he lacking for anything. He has toys and books coming out of his ears and does not lack anything.

Next came the food stealing. Candy, marshmallows, granola bars. If he asked I would happily give these things, in moderation, to him. He doesn't ask,just takes and isn't sneaky enough to get away with it as he hides his wrappers in his room and I eventually find them.

Now, it has become large dollar amounts. $50 one week and took it skiing and flashed it around bought a little candy. I found the money later and he had been playing with it in his legos and I asked about it and took it. a few days later it was $2 from my car. Found it right away and he didn't get to go out to dinner that night and was sent to bed. Today, I was doing laundry and his pocket was all bunched up so I stuck my fingers in to push it down and found $60 folded up. I know this was taken right from my wallet last week as all of a sudden my cash was gone.

I am all for with holding items, taking toys away activities etc but nothing really seems to sink in and matter to him. He knows stealing is wrong and against the 10 commandments. He goes to catholic school. Should I have the youth priest, the one who works with the school not just the parishioners talk to him. He just had his first confession and confessed the first incident. He has an iPod but it is only for traveling and screen time is already less than 2 hrs per week. I think the hammer needs to be dropped and some dire consequences need to happen so this sinks in and it stops ASAP. Just at a loss with how to proceed..

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