I used to follow the idea that chores and allowances should be kept separate. Philosophically, I still agree. The allowance (in my mind) is an item intended to teach money management skills. Chores are simply part of life.
However, in reality, it has become much better for us to have those items linked in some way. At the start of the school year, I had my kids sign contracts (ages 9 and 11). The contracts detail the things they have to do each day. In exchange for doing those tasks, they will get paid at a rate of 50 cents per day, payable at the end of the month. Failure to do any of those things results in a loss of 50 cents that day. Parents also reserve the right to add other chores when needed.
This system as COMPLETELY ELIMINATED their habits of asking for things from the store! They use their own money to buy gifts for others (we sometimes offer to supplement, like at Christmas), to buy snacks from vending machines, and to make any of those other silly purchases that kids are prone to make. Obviously, we fit in lessons about smart spending, but the decisions are theirs. My daughter has become quite the saver, treating herself only to an occasional candy. Best of all, we budget for this expenditure, so we don't end up blowing an unspecified amount of money indulging the kids each month.
As for the chores in their contracts, they include: loading the dishwasher, packing/bringing the "extracurricular" bag, letting me know when things need to be signed or money needs to be sent to school (I will not go through their backpacks to discover this on my own), keeping up with homework assignments independently, unloading the dishwasher, clearing the dinner table, putting away laundry, making their own breakfasts, and packing their own lunches.
Over the summer, I intend to add taking out trash and washing clothes. I will also add something academic over the summer related to the number of books they read or something. I'll figure that out a little later.
