Allowance gets emotional fast. It feel odd at first to put a number on independence, but funny thing is NYC kids see money everywhere and a litle cash means belonging. One tween I know spends on snacks and subway rides and it were abit stressful for the parent when a friend bragged about getting double. Sometimes fairness feels like comparison. Later they added a tiny rule that half the allowance goes toward something they really want so impulse doesn't eat all of it, and the kid liked watching savings grow. Not sure why but structure can calm envy. Honestly parents just want their kids to learn value without feeling left out.
I pay my tweens, and my teens $25-$30 a week depending on age, tied to chores and responsibility. NYC They do most of their spending on food, fashion and small tech purchases. The fight is also that comparing friends often get more, which leads to other arguments. This is how I deal with that: I tell him allowance isn't about what other people are allowed to do. It's about learning to manage money. In a city where independence comes early, allowance serves the end of responsibility, not status.
One thing that I can tell you about my experience in insurance is that discussions about financial literacy tend to begin much too late. Parents visit at 50 or 60 with no history of talking about money with their own children and gradually, they start taking questions about life insurance to keep children safe because they do not know how to make a basic budget. I have dined next to families who had spent half a figure at college and the kid did not understand what a deductible is or the need to have emergency savings. It is not a disconnection in the amount of dollars of allowance. It is all about the teaching consequence of anybody. I have been brought up believing that money is a choice rather than purchasing power. My parents did not give me money without the background. They demonstrated to me trade-offs: purchase this now, and be unable to purchase that at a later date. That made me the way I operate my business and the way I am currently raising my four children.