Don't make her work. Work is frankly sh*t, especially for 17 year olds, and she'll waste enough of her precious life doing it after college/uni. So give her a break
I got a job when I was 16, but it was so massively and utterly depressing I gave it up - I preferred to do without the money! After all, time is one of the most valuable things in the world once your food and shelter are taken care of.
Why not have the 'review' she asks for? Make it like a budget meeting at work. She has to put forward a case, stating why she needs it and what benefits YOU'll get for your money. Then you can state your side of it and whatever budgetary concerns you have.
My parents always hid the finances from me, presumably so that I didn't blab about how much they made, but that meant I had no idea how much money we did or didn't have, so didn't really understand why we couldn't have things.
If her friends have more than her - tell her to suck it up. That'll be the same all through life, you've just got to get used to it, and the sooner you do the sooner you'll learn not to splash out on credit cards all the time.
Oh, and make her take Dutch lessons if you live in Holland FFS.