S.E.
Oh, I was so excited to answer this...
I just started a new system with my girls. A girlfriend's sister does it. First, a little background; I have two daughters, 5 and 3. I started an allowance based on Clark Howard's suggestion (found in his book). He suggests that by age 5, allowance is a good idea. The kids do chores they can do (put clothes away, set and clear table, sweep, etc.) and they get paid $1/week. I started this and keep telling my girls that they can go with me to the bank to deposit the money they've earned in a savings acct, but we never make it. Also, I've let them "shop" once and I have to keep track of what they've spent. It was tedious. Now the good news!
I went to Big Lots and bought poker chips. I broght them home and told the girls that from now on, they will earn "chips." I started just this week. I bought a Valentine's Day plastic cup for each and that's where they "bank" their chips. Right now, I'm "paying" them for doing the right thing (getting out of bed the FIRST time I ask, getting dressed BEFORE I ask, etc.) Initially, my goal is to get their morning behavior where it needs to be so we can have a smooth transition to school/work. It's working like a charm. They're acting like little angels in order to earn a chip! It's tangible and they can watch their chips grow in their cups. I have taken a chip away only once. My 5-yr old was having a tantrum and her continued behavior (defiant) was unacceptable. I gave her a warning that if she didn't stop behaving that way that I would take a chip away. When she didn't stop, I took one. It stopped her cold!
So, anyway, as they're in the habit of doing the right thing, I'll concentrate more on "paying" for chores. I want to get the behavior set first.
Each chip is worth a dime. They will get to "cash" in at the end of the week.
I hope this helps!
S.