Here is a link from momversation.com where the ladies talk about the subject of giving an allowance to your children.
We have certain things we expect Carter to do for this allowance he has requested. The tasks linked to the money he gets are for jobs that make my life easier and would not typically be expected of him. I expect him to keep his room tidy, scrape his plate and put it in the sink after he eats as well as many other "must do" tasks that contribute to the overall well being of the family. We give him money for making his bed, dusting etc etc. We have a catch though.... for every job that he is paid to do and skips doing it, he gets docked $1.00 meaning in a few short days he could be down to zero. This allowance thing has been ongoing now for five months and there has only been one week where he had to docked... and it was only for $2. So far so good! Also, it has COMPLETELY taken the pressure off me having to cave when we go to a store and he wants something. He now has his own money to buy the things he wants and has been making very wise spending decisions I must add. I do like the idea from the video where the child gets a certain amount to spend, a certain amount to save and a certain amount is set aside for charity.... I'm thinking we'll incorporate that in the raise I'm sure he'll be asking for sooner than later!