Save Money Effortlessly with the 1p Savings Challenge
Saving money doesn’t have to feel like a struggle. With the 1p savings challenge, you can effortlessly build your savings every day without even noticing the impact on your budget. Introduced by money-saving expert Martin Lewis, this method helps you save a little daily, gradually growing your savings over time. Whether setting a New Year’s resolution or just looking to improve your financial habits, the 1p savings challenge can help you reach your goals this year.
What is the 1p savings challenge?
The 1p savings challenge is a simple and effective way to save money. The idea is to start small by saving just 1p on the first day and gradually increasing the amount you put away each day. It’s a flexible and affordable method to build a habit of saving while working toward a year-end goal.
How does the 1p savings challenge work?
The challenge works by increasing the amount you save each day by just 1p. For example:
- On day one, you save 1p.
- On day two, you save 2p.
- On day three, you save 3p and so on.
You don’t restart at the beginning of each month—you carry on from where you left off. By the end of the year, these daily savings add up to an impressive £667.95.
To make tracking easier, consider using a savings chart, a jar for coins, or a banking app to automate transfers. These tools can help you stay on top of your progress without hassle.
This table shows how much you will have saved at the end of each month:
| Month | Amount saved |
| January | £4.96 |
| February | £12.74 |
| March | £23.25 |
| April | £31.65 |
| May | £42.16 |
| June | £49.95 |
| July | £61.07 |
| August | £70.68 |
| September | £77.55 |
| October | £89.59 |
| November | £95.85 |
| December | £108.50 |
| Total | £667.95 |
Why should you try the 1p savings challenge?
The 1p savings challenge offers several benefits that make it an excellent choice for anyone looking to save money in a manageable way:
- Work towards your financial goals
This challenge is a great option if you save for a specific event or expense, such as a house deposit, a holiday, or Christmas presents. It helps you break down your goal into small, achievable steps. - Build a consistent saving habit
Saving money consistently can be tricky, but the 1p savings challenge makes it easy to stick to a routine. With the small daily increments, you’ll barely notice the impact on your budget, yet you’ll see your savings grow over time.
To make saving even easier, consider cutting out some everyday expenses. Check out 4 things to cut out to save money for helpful ideas on reducing your spending.
- Teach money management skills
This challenge is a fantastic way to teach children about financial responsibility. Using a money box, you can show them how small amounts add up to something significant, helping them develop healthy saving habits from a young age.
Read our guide on teaching children to spend responsibly for more ways to educate young people on life skills.
How do I get started with the 1p challenge?
Like any challenge, getting started is key. Here are a few steps to help you get going and stick with your plan:
- Set a goal
Consider what you want to achieve with your savings—building an emergency fund, upgrading your home, or treating yourself to something special like a spa day or a new gadget. Having a clear goal will help you stay committed. - Create a jar
Use a piggy bank or jar, or even decorate your own to make saving more fun. Alternatively, if you prefer a cashless method, you can use banking apps like Monzo, which allow you to create “pots” to manually put pennies away daily. - Start saving
Once you have your goal and method, it’s time to start. Don’t worry if you’re starting halfway through the month—begin with 1p and keep going! If you’re saving with coins, you can easily convert your loose change into notes at the end of the year.
Services like Coinstar offer cash exchanges for coins, or you can check if your bank provides coin deposit facilities. To help you get the most out of your savings journey, read our money hacks to boost your savings.
So, whether you’re saving for a special event or teaching kids about money management, this challenge is a great place to start. Ready to boost your savings further? Check out our money-savvy blog for more tips and tricks to maximise your finances.
