4th Gen - need more memory

My daughter's iPOD only has 8gb, which is really just over 5.5. I bought icloud storage for $20/year thinking she can move some apps over to icloud and download more apps. I think what i was trying to do was create more memory. Is that possible?

She does not have the latest OS update because she has no more room. As a matter of fact I am not sure what her lastest update is. I don't think it matters for my question though.

thanks for your help,

Non-techie Mom