I used to get anywhere from 25 cents to $2 growing up. The last few were really disenchanting, I'd tell Mom I lost one, and she'd hand my money from her wallet. Really lost the magic in there somewhere - I simply felt entitled to money.
So, I swore I wouldn't do money with my kids. DH went to the local bead store, picked up some inexpensive chain, a clasp, some pins and mother-of-pearl beads. DD gets a bead for each tooth she loses. Total cost was $7 for startup and first two teeth (we kinda had to hurry because they were extracted during major surgery).