As a parent, let me say that I think it's ok to pay kids for chores, as long as it's clear that not everything you ask them to do gets them $$. Just these specific things. Then, when my kid has dropped yanked on her tablet power cord one to many times and has to buy another for $8, she appreciates those $8 more.

I agree that physical money teaches that lesson better, though. This app seems to be a solution in search of a problem.