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It doesn't do a real time alert but I have my son keep his ipod touch in his pocket. When I need him to come home I use the find my iphone alert and play a sound to the device. It works well when he's at a neighbor's house playing or when I haven't heard him in >5 minutes. I don't want to force him to sit inside while I'm cooking dinner every evening so I'll poke my head out back and then use the find my iphone feature if I don't hear/see him. You can see where they are and then play a noise if they're outside the area.
Following this thread to see if there's a better solution out there as I'm sure there must be.