We have been basically following the advice given in this article.
http://www.bankrate.com/brm/news/pf/20070206_allowance_child_age_a1.asp[/URL]
So for it has worked very nicely for DS (11). He is a saver and does not like to spend his money. If/when he does it is well researched and thought out. He now has over $400 in his wallet.
Definitely time to open up a savings account for him. He has informed us that he would like to start saving for a car <I>
now, </I>so that by the time he's old enough to drive he'll be able to afford one. LOL!
DD (9) is a different story. She's learning, but it's taking longer with her. She tends to spend her money almost as soon as she gets it, but is now starting to save for special things.
Generally we don't buy things for our kids, other than clothes and necessities, unless for their birthday or Christmas. We were guilty of buying them stuff they wanted just for the heck of it when they were younger, but quickly realized the downfalls and changed our ways. If they ask for a video game, for example, we'll say, "Put it on your birthday/Christmas wish list or save your allowance for it." End of story. They really do appreciate and care for their things MUCH better if they use their own money to buy them.