If I don't keep my room clean, my parents will cut/reduce/deduct my allowance.
Do all of the word do the trick in the above sample? If not, what are the alternatives? Thanks.
Deduct doesn't work here. To use deduct you would have to say something like:
If I don't keep my room clean, my parents will deduct $5 from my allowance.
This could mean on just one occasion. The others (in British English at least) seem to suggest that your allowance would be cut/reduced on a permanent basis.
No, neither would work in the context of my sentence.