Maybe you want to get better at saving money, but it feels like a struggle. You’re not the only one: A found that 53% of American workers say it’s difficult or impossible to consistently save enough money to feel comfortable for emergencies, retirement, or any other reason, given their current financial situation.
However, having a healthy savings account balance is crucial for staying out of debt and reaching your financial goals. Starting small and building positive saving habits can help you get the ball rolling. For many savers, the 52-week savings challenge is a great way to do just that.
How the 52-week savings challenge works
The 52-week savings challenge helps you set aside a small amount of money each week that snowballs over a one-year period. The idea is that you learn to save money consistently over time and adjust that weekly deposit upward little by little.
The challenge starts with saving just $1 the first week, $2 the second week, $3 the third week, and so on. By the final week of the challenge, you’ll set aside $52. And at the end of the year, you’ll have a total savings of $1,378.
Experts say that these types of challenges can motivate savers to stick to a strategy. “Savings challenges work because they ‘gamify’ something that might seem dull, boring, or hard,” said Lindsay Bryan-Podvin, a financial therapist at . “We may be more likely to follow through when we take something challenging and put a fun spin on it.”
Here’s a breakdown of how much you can expect to save over the course of a year:
Where to put your savings
Where you put your money is just as important as how much you’re saving. Before you begin the savings challenge, think carefully about what type of bank account is best for your situation.
A traditional savings account can provide a safe place to store your savings with easy access to those funds. However, it may not be the best option when it comes to earning interest and maximizing your savings over time.
The national average rate for a traditional savings account is just 0.47% as of March 2024. On the other hand, high-yield savings account rates can be as high as 5%. High-yield savings accounts offer the same security and liquidity as traditional savings accounts, but also provide an opportunity to earn compound interest at a higher rate. This means your money will grow faster over time, even if you don’t make any more contributions.
Another potential option is a money market account. This type of account works like a hybrid checking and savings account. Money market accounts also tend to offer higher interest rates than traditional savings accounts, along with check-writing and debit card privileges. However, you may be required to maintain a minimum balance in order to earn the highest advertised rate and avoid fees.
Read more: Money market account vs. high-yield savings account: Which is best for you?
How to start the 52-week challenge
If the 52-week savings challenge sounds like it could help you, here are a few steps you can take to get started:
Set a savings goal: Having a clear picture of what you’re saving for can help you stay motivated. Using this challenge, you can expect to save just over $1,300, which could be enough to pay off a debt, start an emergency fund, or pay for an upcoming vacation.
Review your current spending habits: Before you start this savings challenge, assess your current financial situation to determine if you have the funds available to make weekly savings deposits. If not, you may need to figure out if there are expenses you can cut to make this challenge easier. For example, maybe you have unused subscriptions that are eating into your monthly budget that you could freeze or cancel to come up with extra cash.
Decide where you’ll keep your funds: As mentioned, there are several account types you can choose from. Each has its pros and cons; the best choice will be the one that helps you stick with your plan, avoid fees, and reach your goals.
Read more: What is a good savings account interest rate?
How to stay the course
Consistency is key when it comes to saving money. The goal is to build positive habits that carry on even after you’ve finished the challenge.
“These savings challenges can be helpful because they start out small and grow over time,” said Kendall Meade, a financial planner at SoFi. “They also get you used to saving, which can carry over once the challenge is over.”
Meade added that one pitfall to avoid is rewarding yourself after the challenge is over and spending that savings or spending more than you would have without ever doing the challenge. That’s why it’s important to have a clear goal in mind when you start.
Here are a few tips for getting the most out of this challenge and staying the course:
Keep a budget or expense tracker to monitor your savings progress: Follow a detailed budget or use a budgeting app to monitor your spending, find opportunities to save more, and watch your savings account balance grow. This can motivate you to keep the momentum going and continue saving.
Be flexible: Life happens. Sometimes, unexpected financial obligations can make it more difficult to save. Be realistic about whether or not this challenge is working for you — if you need to temporarily pause the challenge to address a more pressing financial need, that’s okay. You can always pick up where you left off.
Involve others: Share your savings goal with friends or family. You could even challenge them to participate with you. Having a support system can increase your motivation and accountability.
FAQs
The challenge starts with saving just $1 the first week, $2 the second week, $3 the third week, and so on. By the final week of the challenge, you'll set aside $52. And at the end of the year, you'll have a total savings of $1,378. Experts say that these types of challenges can motivate savers to stick to a strategy.
How can I save 1300 in a year? ›
Key takeaways
- The 52-week challenge starts with saving just $1. If you stick with it, you could have more than $1,300 by the end of the year.
- Review the various account options for your savings.
- Savings challenges are meant to complement, not replace, larger savings guidelines.
There are no complicated rules to remember. Week 1, you save $1.00. Week 2 you save $2.00, and it continues through the year, adding one more dollar to each week's savings goal. By Week 52, you'll set aside $52.00, which will bring the year's total savings to $1,378!
How can I save $5000 with the 52-week money challenge? ›
If you want to save up $5,000 in a year, start by saving $4 in the first week, $8 in the second week, $12 in the third week, and so on. After 52 weeks, you'll have saved $5,512.
How do you do the 1 to 52 week savings challenge? ›
The 52 week saving challenge - save £1,378
Essentially, you save £1 for each week you are on in the year. So week one = £1 and week 52 = £52. Like the larger daily challenges, this will require other savings efforts as you'll be putting some significant sums of money into your savings pot by the end.
How to save $10,000 in 3 months? ›
Setting realistic savings goals is essential to ensure that you don't set yourself up for failure. One way to do this is by breaking down your target amount into smaller milestones. For example, if you aim to save $10,000 in three months, you can divide it into monthly targets of $3,333.
How to save $2000 in 12 months? ›
5 Ways to Save Close to $2,000 in One Year
- 1) Cut out one coffee or drink per week. Do you get coffee daily or get a drink on a frequent basis? ...
- 2) Cut out eating out once per week. ...
- 3) Use Store Apps for groceries. ...
- 4) Unused subscriptions/memberships. ...
- 5) Find local free entertainment or stay at home.
The 52-week savings plan
But know that this savings plan is effective, and it can help you sock away more than a thousand dollars in a year — $1,378 to be exact. You could build up even more if you put the funds in a high-yield savings account. Doing the challenge takes commitment, but it's easy to start.
What is the 52-week rule for savings? ›
What is the 52-week money challenge? Using the 52-week money challenge, you should deposit an increasing amount of money into your savings each week for one year. Match each week's savings amount with the number of the week in your challenge.
How much is $1 dollar a day for a year? ›
With no interest involved, putting one dollar a day into a bank account (or a jar at home) will see you end up with $365 in a year. Multiply that amount by 30 years and you'll end up with $10,950. Now let's factor in an interest rate of just 1%.
If you save $11-12 every weekday, for 52 weeks of the year, you get about $3,000. Now, if you also eat out a lot for dinner, eating in for dinner would save you just as much.
What to do in 52-week money challenge? ›
The idea is to begin by saving a small amount of money, increasing the amount saved each week until the end of 52 weeks. One of the most popular ways is to start by saving $1 in the first week, and increasing the savings amount by $1 each subsequent week.
What is the best money saving challenge? ›
100 Envelope Challenge
To begin, gather 100 envelopes and sequentially number them $1 through $100. On day one, you'll place $1 in envelope one. On day two, you'll add $2 to envelope two, and so on. Place each envelope in a safe place, and by the end of the challenge, you'll have saved $5,050.
How much money do you get after 52 week challenge? ›
One of the biggest advantages of putting your 52-week challenge money in a high-yield savings account is that you will earn interest. Hence, your final amount at the end of 52 weeks will be slightly more than $1,378, which is the amount without earning any interest.
How to save $5000 in 3 months? ›
To translate saving $5,000 in three months into smaller increments, divide the total goal by the number of months, weeks, and days in the time period: three months, 12 weeks, and 90 days. Here's the approximate amount you'll need to save, broken down: Monthly: $1,667. Weekly: $417.
How to save $1500 in a year? ›
To save just over $1500 in total, you can fix your weekly deposit at $29 over 52 weeks. It's a good idea to then schedule regular automated transfers into a bank account so you can save without even thinking.
How much can I realistically save a year? ›
Aim to save 5% to 15% of your income for retirement — or start with a percentage that's manageable for your budget and increase by 1% each year until you reach 15%.
How to save up $1,000 dollars in a year? ›
Here are 11 strategies for saving $1,000 quickly.
- Set a clear timeline. First, ask yourself by when you want to save this amount? ...
- Track your expenses. ...
- Cut unnecessary subscriptions. ...
- Dine in more often. ...
- Shop smart. ...
- Sell unused items. ...
- Set up automated savings. ...
- Limit impulse buys.
If you save $11-12 every weekday, for 52 weeks of the year, you get about $3,000. Now, if you also eat out a lot for dinner, eating in for dinner would save you just as much. And if you eat out on weekends, your total amount saved by cooking for yourself could reach $7,500 or more.
What if I save $100 a week for 1 year? ›
The first thing we need to know is how much $100 per week works out to on an annualized basis. There are 52 weeks in a year. That means that, after a full year of saving, $100 per week adds up to $5,200.
