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I try not to overdo the treats as I tend to think that they have too much too often! I usually treat them with things like sticker books or little materials for art work.
Birthdays and Christmas are very different and I have just bought my 5year old grandson the lego city starter pack as alas the pile of duplo I had amassed from charity shops is now considered to young.

No sweets!
Trips out, walks, swings in the park, small toy or book when something achieved.
Nothing has changed from one generation to the next!

I buy mine books usually, and occasionally puzzle or colouring books. They do have sweets, usually a bag of giant chocolate buttons, but we are not a great sweet-eating family. They love Lego, and have a Legoland pass, but it's so expensive now that when they come to stay with me I have to buy them sets on eBay. Even on there it can be pretty pricey, I have to say it does hold its 'value' well. Still, it does keep them occupied for a long time so it's worth it.

Sticker books

My six grandchildren are now adult, so 'treats' usually mean money towards some project or item they are interested in. I do this on an ad hoc basis, giving gifts as and when, although I try to make sure that each gets approximately the same amount overall. I also organise days out to places of interest. I have never given pocket money on a regular basis. When my own daughters were young, I operated very much the same system, although they did each receive regular pocket money from grandparents. When they were older, I would often match any money they saved towards some treat from their pocket money, or occasionally paid them for doing small jobs.

Watching a film or TV with them and listening to them explaining the plot or commenting how funny it is without interrupting ...anode is all that's needed...