Well, my kids don't get an allowance and they don't have assigned chores (though they are asked to do things: bring up the trash can, get the mail, empty dryer, pick up sticks before DH mows).
I generally pay for outings, but we don't do many with friends. If it were becoming a regular thing, maybe I'd give them a monthly budget and then they could plan accordingly. As far as other extra wants (books, cool clothes, art supplies), I tend to go with a "well, add it to your birthday/Easter basket/Christmas wish list." If they want it sooner and they have money from gifts, they can use that.