Our kids are 11 and 9, they get a couple of dollars pocket money each week, and a bit more if they do chores.
If we are out and they want to buy a toy, I always let them know how much it is, can we find something better for less, what else could you buy for that much money, do they really want it, the money will come from their piggy bank and so take longer to save up for the more important goals (eg one of my son's friends is saving for an iPad, and my son recently reached his goal of buying the latest DS, including birthday money).
We buy all their clothes and entertainment. When they each start high school I would like to give them an allowance to cover these things, however I might put it off for a bit so I still have some say in their clothes, lol! We don't go in for designer stuff, and I find my daughter is very creative and stylish with her clothes.
They do a number of activities which all cost money, they know that each is a 12-month or season commitment.
They come grocery shopping with me and we talk about which items are the best value for money.
They know that we have bought a few "rental houses", and people pay us rent to live in them. They have been to an auction with us (we were successful, thank goodness!). They don't enjoy house-hunting (not many people do after the first couple of weeks!)
I am conscious that we have the ability to spoil them, but try hard not to. They have heard the word "no" on regular occasions.
We live in a nice but not elite suburb, very multicultural, I want them to be comfortable with people from different backgrounds.
What hasn't worked? We used to say "yes" to buying little things for them when we were out, they came to expect it and it became painful. Cash for chores - its a bit haphazard! We need a plan for allowance when they are teenagers.
I look forward to learning from others here, hopefully there's loads of great ideas from parents who've been there, done that!