Why not both?
Having kids earn money is a great way to teach them the value of a dollar and will give them their first lessons on how to handle money — a skill they will desperately need when they grow up.
Allow her to earn money. Tell her that a portion of the money (the exact percentage to be decided between you and her) has to be put away and the rest can be used as she likes (subject, of course, to your house rules).
Kids who earn money need to have the enjoyment of spending some of it — if not, they’ll simply stop doing it and then have nothing saved in the bank.
The Wolf