Our view is that each member of the family has jobs to do to keep the family running. This includes income generating work as well as non-remunerated, but equally important, tasks for the household. DDs primary job is doing well in school and she also has chores to do around the house.
In exchange for being a member of the house, each member gets a monthly allowance for personal purchases. This allows each of us to get the things we want without a lot of discussion or negotiation.
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We do still buy things for her from time to time without insisting on payback. Books, for example, but it's a surprise and gift rather than an obligation.
It is this way here too. There is also a Parental Bank where if you leave savings on deposit rather than spending your allowance right away, you earn compound interest (at a higher rate than banks now offer, to make it visible to the child). This encourages saving.
Bostonian's Roth IRA idea is excellent advice.
