Free???

I was recently asked if I would design a graduation announcement for a young man that was to be graduating this year. After several exchanged texts and phone calls we had decided on what this announcement would look like.
Now, back in the day I used to take payment for designs after they were complete and the client was satisfied. Not anymore! I was burned one to many times by people that said they loved the design but once they received the invoice it wasn't so great. So I now require the payment before hand so I am not out my time.
I informed this person that I would need payment up front for the design before I could get started. She completely avoided the comment and asked when it would be done. I again told her that she would need to pay before I started. Her response was this, "you're just a local freelancer. Shouldn't these be free"? What?!?!?! Absolutely not!! I don't think I have been more frustrated and had the urge to reach through the phone and sucker punch someone!! I was floored.
I proceeded to tell her in a very calm, cool, collected way that a lot of time, effort and energy goes into graphic design and that if she was ever to get it for free than she shouldn't expect very good quality design.
She declined my services and I sent her on her way!
I am amazed at the amount of people that expect things done for free. She was expecting me to take time valuable to me and use it to make her a high quality graduation announcement. Thanks, but no thanks!
What do you think? Was I wrong to send her packing or should I have cut her a deal?