I think it's HOW you introduce the idea of allowance and chores that makes the difference. My son (4yrs old) knows and can/does explain to relatives and my friends how it works, so I know that he understands. We are a family, and family is a team and we do teamwork to make everything work happily and smoothly. Things will get done regardless of how he feels or what he wants, BUT if he wants to do a good job and do things without having to be nagged or me fighting with him, then we will treat it as a job and "pay" him. We make the family talk a happy thing, not a naggy strict thing (we sing the Wonder Pets themesong: what's gonna work, teaaaaaam work!) and just go about it. It's fun.
I've told this before, but basically he had just turned 3 when we started; he wanted to wear a tie and go to work to "buy money" because daddy wears a tie and works for money. We were trying to find something to make him feel big and special because I'd just had a baby. He was brokenhearted after my husband's paternity leave ended and he was leaving to go back to work. He was crying that he wanted to go to work too. I took him aside and had a heart to heart with him and said that I thought it was important to learn all kinds of things that a "job" could teach him, and that now that I was so busy and tired with the new baby, I needed a lot of help, so would he consider staying home with me and helping me, and that will be his job, and I'll pay? He was very very excited about this!
At 4, he gets up and dresses, comes down for breakfast and eats without fighting me (we used to have mealtime issues), he puts his dishes in the sink and cleans up after himself, brushes his teeth with my help, makes his bed (it's not perfect but he straightens it up and that is just fine). He helps me with laundry (he sorts the laundry by colors, pants go separately, I hand him clothes from the washer that he puts in the dryer and checks the lint thing, closes the dryer, I turn it on. He empties the dryer into a basket, pushes it to the couch, where he helps me there too (divides things and folds the washcloths and hand towels, I do the clothes and bigger towels). We talk and watch Dinosaur Train while doing it together. He takes a swiffer and runs it around the tile floors, dusts with a swiffer cloth, vacuums the carpets, and gathers the little bags from all "little" trashcans (office, bedrooms, bathrooms) and throws them into the big trashcan in the kitchen. He knows to pick up after himself after playing downstairs before we go out, or to straighten his room between dinner and bathtime (takes 5 minutes): we have a cubicle system we got from IKEA with nice canvas bins, and he puts the toys away in the proper bins so it's easy to clean and easy to find the toys he wants later. He feeds the cat and waters the vegetables, and sometimes helps me cook (or plays with his little brother while I cook, depending on the meal and what's going on). He is very good and a big helper at playing with his little brother! And he practices his scripture for awanas and his forms for kung fu, we go for walks to the park to follow him on his bike where he plays with friends or some soccer with the family. We practice handwriting and go along with what he's learning in preschool. A lot of this, we do together. I will be windexing or cleaning the bathrooms while he is vacuuming and swiffering. Those are his normal chores, along with making good choices. (My 15 month old son loves to run around picking up things to throw in a big laundry basket that he can push around, and we make car noises and "drive" it to different rooms to put things in their proper places and keep the clutter down. He loves to throw laundry in the hampers. We are working on recognizing whites vs other colors by throwing whites in the white bag and colors in the blue bag. He also "loads" the dishwasher with his toy pots/pans.)
What we've learned over 1 1/2 years of doing this so far is that it is better to do things on a day by day basis because a week is very big for a preschooler. I used flylady.net to help me make my OWN weekly routine (not exactly theirs, but one that works for us and our schedule....we do a little bit every day to make sure everything gets done every week, but not all in one long miserable cleaning day because I hated that as a kid). I figure if the kids are gonna be expected to have a list of chores and expectations every week, I could do the same for myself. If he does his chores for the day, he gets to put a star sticker on the day on his calendar by his bed. If we didn't have a good day (bad choices or not doing his "work"), we make an X on the day. We've learned that a blank space doesn't mean anything to him but an X is something he doesn't like at all. Part of our bedtime routine is that he gets a story read to him. Then we talk about our day (good things, bad things, whatever is on his mind, we discuss what he did that day including "wow, you made really good choices and did a good job with __ " and give him a star to put on the day, or "I am sad that we had a problem today with ___" , discuss possible changes to keep it from happening the next day, and put an X on the day but sure we can have a better day tomorrow when we ___. Then we pray and lights out. This teaches him accountability, days of the week and the events we have on what days, we practice counting the stars at the end of the week in English/Spanish, and he gets 25 cents a day for each day there is a star for the week.
We got him a bank that is 3 banks in one, called The Giving Bank, decorated by stickers to show what you're putting your money in (tithes and offerings in the church building, savings in the bank building, and spending money in the store. On Saturday evening, he counts the stars and I count the money that works with. 10% he puts in the church, 10% in savings, and the rest goes into his spending money. He understands this well enough to explain it to others. Now we're teaching him how to handle money, charity, savings, all that on a very elementary level all because he earns an allowance.
We do stuff together a lot. But if he is saving for something (he's purchased a Spiderman fishing pole, a Toy Story sleepover set (bag, sleeping bag, flash light, etc), a couple toys, some cowboy stuff, etc with his own money), then I will definately pay a "bonus" for "bonus" work or time on special projects. We do things because we're doing it. But if he is real good about trying to help us with vacumming and washing the car, or cleaning the outside windows with us, or picking up the bits when we're trimming the hedges, etc then I'll give him a bonus. Whether that is 10 cents or 10 dollars depends on what I feel (his attitude, the task, how much help he may need to get what he's saving for, etc are all factors). If he does something on one of his other activities (sports, clubs, etc) that is usually not counted in allowance. He did great at kung fu, made a tournament team, and earned his next belt, and I bought him a shirt from the school and took him out for a treat, that kind of thing.
Not sure how old your child is, but we had other ways to make money as a kid, which is what I'll do with mine as well. Everything from mowing lawns, babysitting, operating a snack bar at events, working at my uncles auction barn, trouble shooting or basic web pages for people (dad owns a computer company that does networking, etc), typing reports for kids at school for pay, a tutoring service, all kinds of stuff. That was in addition to our $10 weekly allowance for chores and we also did fundraising for our youthgroup or mission trips in all kinds of creative ways. I brought a whole youthgroup out as extras for a big movie that was being filmed locally and they paid $10/head (all went to an upcoming event we were going to), or instead of doing just regular little car washes, we'd specifically target the 18 wheelers and wash those for much more money, the grandmas all got together a couple times to sell tamales and baked goods, etc. But that wasn't "steady income" those were big kid versions of "bonuses" (except the lawn mowing my brother did and the babysitting I did).
One way that this is PROVING to be a help: he's quick to give and assist others in charitable ways because he's had the means to practice it and he sees it. He also is wise with his money ESPECIALLY for his age. One time, he asked me for chicken so we ordered and pulled around to pay. Then he saw Sonic and changed his mind to grilled cheese sandwich. I said No, we've already ordered what YOU said you wanted! He insisted he wanted the sandwich and I said we'd already ordered. He still insisted on the sandwich. I knew I could do whatever I wanted, as the adult in the situation. But I saw an opportunity to teach, and took it! I said "OK, here's the deal: the FAMILY is eating chicken, which was your idea. If you want to do what the FAMILY wants, you will be taken care of and not have to pay. If you go out on your own, and do something that is different than the FAMILY then that is your choice, but you will have to pay with your own money". He said that was fine. I paid for our chicken (figuring his portion could be lunch the next day) and took him to Sonic. I read the price and said "Ok, this is $2. That is 8 days of work for one sandwich. Are you sure you want to buy 1 sandwich that is 8 days of work, or would you like the chicken for free?" He wanted the sandwich and I said Ok. We went home, I put his food on a plate and poured his drink, but told him not to touch it yet. I got his bank and had him count out 8 quarters to pay me back and said "Ok, thanks. You may eat". I didn't gloat or say anything to him, acted normal, but it was cute to see that he could hardly choke the sandwich down after "paying" for it. Now we go places and he'll want to play with something or ask for it. I will say "I will keep that in mind" (because it's not a promise either way, but I do often buy little things for no reason and surprise him with them another day). But if he pushes that he wants it, I say "Ok, if it is important to you, you can pay for it with your own money" and he will say "nah, I'm just looking at it right now" about 99% of the time. When we do go places to buy something fun (souvenier shop or whatever) I will say "Ok, you have this much money" and then he'll pick several things he likes, then chooses which thing he likes the most for the money he has. These are invaluable lessons. And they keep the tantrums in stores from happening like I see with other kids. Yes, I am ABSOLUTELY for allowances.
His chores will adjust as he ages (and as his little brother comes along and takes over the more simple ones). Shortly, he will get to add wiping out his bathroom sink and counter to his daily chores because we've just noticed the need. Also, he has been watching me put the napkins and forks/knives out and what goes where for setting a table. We'll probably give him that job a little later, when it feels right. We're not overloading him, but he's just knowing it's good to do things, and to do them well. But my advice would be to show children how to do things well, but don't harp on them or expect perfection. Be realistic with their ages and skill levels, and try to understand that things won't necessarily be perfect. But as long as they're trying and not attempting to "get one over on you", that's what matters. (Thinking of the cubscout mantra: Do Your Best). Good luck finding what works for you guys!