I know I've explained how my kids don't get paid for their basic family contributions, but do get paid for doing extra jobs around the house. After saving up, they each had just over $1. I let them pick anything they wanted from the dollar store. (I did take them straight to the toy aisle before letting them look.)
She is holding up her pink maracas. He won't even look up from his blue truck. They were so happy to have something they earned and paid for. They also quickly learned that toys from the dollar store don't hold up to typical wear and tear from preschoolers. They decided next time they will spend more than $1 on a toy.
The best part of this experience from my perspective is when they ask for something. I simply ask if they have enough money to buy it. The answer is always no and they stop asking. I don't have to tell them no. I don't have to explain any more than that. They get it. They understand the value of money. There are times they will find out a toy costs $10 and say it's not worth that much. This is one of the best skills everyone, not just children, needs to have in our society.
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