We have sort of a different system. We expect the kids to do chores, such as help cook supper, clean up afterward, fold and put away their clothes, a few things like that. Allowance is separate. We don't use it as a reward system; they get it every Saturday regardless of how much we've had to needle them to do their chores. (We take away other things if they don't do their chores, such as TV time, iPods or dessert.)
We use it as a learning tool for how to save and spend effectively, and they are totally responsible for keeping up with it themselves, whether in their wallets or piggy banks -- or they can choose to put it in their savings account, too. Any money we find in the washing machine or dryer is repossessed. If you put it in your pocket and forget about it, we take it back into the house account.
Our 9-year-old gets $4 a week, our 7-year-old gets $2 a week, and the other two are too young (we start giving allowance in Kindergarten). We start at $1 for Kindergarten, and we add one dollar each year (weekly).
We see money management/allowance and chores as both being necessary, but they aren't tied to each other. I do enjoy seeing how other people do it, though ... it's always educational! How do YOU do allowance? And if you're an empty-nester, how did you do it when your kids were young?
