My kids have regular chores and do not receive an allowance. I have always felt like everybody has to pitch in to make the household work. With that said, they do get the occasional treats of going to a movie with friends, etc. which is all paid for by mom and dad. Now, if somebody is grounded, they can do extra, heavy-duty, chores to work off some of their time.
My girls are 5 & 8 they've had chores ever since they could walk. They were small (pick up your toys), and got bigger as they became interested. I clean while they are around so naturally they are interested and want to help. I don't criticize if something isn't done the way I'd do it, and if it needs to be redone, I do discreetly so they don't get discouraged. (I will teach them how to do a task, and give them pointers while they are completing though.)
I started with a star chart - giving them stars and letting them use the stars to "buy" things from our prize box. I assigned each a value based on its worth to the girls.
Before our beach trip, I started paying for extra chores or speed, efficiency, and thoroughness of chores, homework, etc. This money was to kept for the beach only. They didn't have to use it at the beach, but they couldn't spend beforehand, and I told them some ideas what they could use it on (mini golf, ice cream, board walk rides)
I also awarded them for going above and beyond with their behavior.
I could also tax them for misbehavior.
This worked so so well, they felt so mature having their own money to spend on what they wanted. And with the stars, they budgeted them for bigger prizes if they chose, it was so amazing to see as a parent, I was and am so proud of them!
They did have regular chores - clean up after yourself, is mainly what I tie them to... which they didn't get paid for, and they had to finish those to do the extras ones for money.
I've always been torn. I feel that you have some things you do just to be part of the family. My kids do trash duty (they have to take out our kitchen trash when it is full) and trash cans (pulling trash cans back to house on trash day), some clean up around house, etc.. I have one that is really pretty good about it and another one that is not. He has sensory integration disorder, a developmental delay and it is hard for me sometimes figuring out how that factors into things. I try to NOT let it factor in. But it is definitely a struggle.
They both are trying to earn money for something they want right now so then I am giving them other chores for money.
I have a friend that keeps a chart and it's a pretty intricate chart. Her kids get a decent amount of money but they have to budget it a specific way with one of the categories being 'giving'. And for that one, they have to do things for others. Her 7 year old took her to McDonalds the other day for lunch for example with his 'giving' money. Kind of interesting.
My husband is a stickler for saving and teaching that to them. so, he has a pot for each of them that they put money into. When it gets kind of full, they then go through this ritual of counting it together and then they get to spend 1/2 and then they go to the bank and put the other half in their savings account. He doubles whatever they put in and shows them the balance.
Its so important to teach them budgeting and finances as a kid, so they grow up and it is second nature.
With the child who isn't as good at remembering chores, just keep in mind when you must be fair that the world will not give a developmental delay special treatment, so that child has to learn how to cope, and it is best to learn now. :)