Oh, the joys of being an older sibling. I didn't have an allowance. Every once in a while, like some of you have mentioned, my parents would institute a chore system where we'd get paid, but every time without fail it would eventually fall apart. There was this one time where my parents thought up a pretty neat way to try and get us all to run - we each were given an empty progress chart and whenever we reached certain cumulative mile markers, we got some nifty prize. Sometimes there were group prizes, like when we all reached 25 miles we'd go out to a fancy restaurant. That one only lasted 50 miles or so (well, I got to 50 miles).
Now, though, each of my younger sisters gets an allowance. They get more monthly income than I ever had as a child, and still complain about not having enough money. I spent my paltry funds on food and video games, but I have no idea what they buy. Clothes, I guess. And makeup and StarBucks and other essentials.