I dont know if I should set up my IPod as new or to restore it from my old one

So i've had it my IPod Touch for six months and never connected it to my computer until now. But it is asking if I want to set it up as new or to restore it from the last time I synced my old Ipod (which was two years ago). I dont want to have my old IPod's information on my new one and I've also heard that setting it up as new will erase all the memory I already have on it. I have about $30 in apps and music on it and do not want to lose it. It has happened to me before while updating it once and dont want to happen again. So does anyone know which one I should choose and the outcomes of both the options?

File>Devices>Transfer Purchases will transfer the itunes purchases to your ocmputer.
You should sync your ipod to your computer regularly.

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