I don't pay my kids for doing chores. Doing chores is something everyone in the family has to do because that's part of being in a family.
But once they get old enough, I give them a budget. DS gets one now. He figures out what kinds of things he wants to spend money on -- how much on clothes, how much on going out with friends, how much for his WOW subscription, etc. Then we negotiate.
Once his budget is set, that's it. If he blows all his money on a $75 t-shirt and can't pay for his WoW subscription, then oh well. He has to earn the extra somehow or do without.
Oh and now that he's old enough to work? He gets nothing in the summer. He has to get a job if he wants money.
DD is still just on the allowance plan. She gets so much a week for whatever she wants to spend it on. But she's only 10. When she's older, she'll be shifted to the budget plan. Unlike DS, she doesn't seem to understand the value of a dollar -- even though they both got the same allowance and it worked the same way -- so I anticipate a lot of whining and crying when she wants new clothes and can't afford them. I have to say, I'm not looking forward to it. But hopefully she'll learn even if it's the hard way. :tt2: