Greg and I love our system because we simply budget $50 a month for the kids fun money, and we rarely hear "Can I have this or that?" requests because the kids know our answer, "Sure...if you use your fun money to purchase it." Our kids are 5 and 3, but they already get the basic concepts of saving and spending money.
Abbie has been longing for these pink sparkle shoes that she saw at Payless when we were purchasing practical black Mary Jane shoes for fall/winter, so she saved her money for one month to purchase these pink sparkle princess shoes and she now lives in them! Greg and I can't imagine Christian ever using his fun money to purchase a pair of shoes, so we couldn't help but giggling over the girliness of our little princess in her pink sparkle shoes. :)