If you get an allowance, chances are you have to do some work in return. On average, kids do chores for about six hours a week to earn their pay.

The bad news is that only 1% of parents who give allowances say that their kids save any of that money, according to a recent survey. Kids spend most of their cash on such items as clothes, electronics and video games.

But financial experts say that it’s a good idea to get into the habit of saving—for example, before making any purchases, you could put aside about 25% of the money you bring in each month.

You can also cut back on your spending. If you spend, say, $5 a week on snacks, try reducing that to just $3 a week. With this approach, you will save $104 within a year.

Saving is an excellent way to avoid penury (see definition below)!

Speak your mind: What do you think is the best way for kids to save money?

PENURY: Lack of resources, poverty, destitution.