Luckily, I didn’t make it far. When I finally got it into gear I crashed into the viaduct paralleling our house blocking the road until another motorist found me.
My parents didn’t spank us often but I sure caught hell for that stunt and my allowance was garnished for a very long time!
So far, she's managed to set aside enough to get a dinosaur lego set she really, really wanted and also gone on some carousel rides and bought candy once or twice. It's been a benefit for everyone, I think.
There concept of routine chores (keep your room clean, help keep shared spaces clean, etc) should be well established before an allowance enters the picture. The allowance isn't for doing those things that are just a basic expectation of family life, and starting them both at an early age risks coupling them.
* This is my own personal opinion about our family, and not in any way a value judgement on differing approaches
I think we started "chores" when she was 3. Obviously a three year old doesn't really do much, but she showed interest in feeding the dog and folding some blankets so those became her chores. We make a point of having both parents visibly do chores together.
We'll see how effective this is in another ten years, I suppose.