The boy figured that there was no way to fight them, and that if he gave them the money then that would be the end of it.
But for the bullies, it wasn't about the money. They didn't like how he sounded when he talked, didn't like where he came from. They heard their parents talking about the boy's home country and the war that had been fought over it. They wanted to punish him in his country's stead. This was the war made new.
The boy went home to his parents and lied about where the money had gone, told them he had lost it. They scolded him, the mother having to go down herself to the grocery and pick up food.
The next week, the boy went to the grocery again and, once again, the bullies asked him for the money or face a beating. The boy realized that this would always be the case, that they would never be satisfied with an amount of money.
So he had to make a different choice.