A new year is the perfect time to begin your journey to financial freedom. For many, this simply means learning how to save more money and if you’re looking for a fun way to do it, this is it!
This is The Penny Challenge or The Penny Savings Challenge which is designed to help you save nearly $700 in a year using your spare change!
What is The Penny Challenge?
The Penny Challenge is a money savings challenge that works a lot like The 100 Envelope Challenge but instead of saving dollars, you save pennies and instead of 100 days, you are saving for 365 days (1 year). So, on day 1 you begin with saving 1 penny, on the second day (day 2) you save 2 pennies and continue increasing your penny savings each day. By day 365, you are saving 365 pennies.
How much does The Penny Challenge Save?
If you complete the Penny Challenge, you will save $667.95 – nearly $700 by the end of the year! It is such an easy way to save a small amount of money each day.
How to Do The Penny Challenge
Start by gathering your supplies. You will need pennies, a jar or piggy bank and a way to keep track of your progress. If you make a penny jar, I made a Free Printable Penny Challenge Jar Printable for you to print and tape to the front!
I also made you a Free Printable Penny Challenge Tracker to help you keep track of your savings progress as you go!
Once you have your supplies, simply begin saving your pennies. The ideal first day to begin is on January 1st but you can begin any time and just add the amount of pennies up to the date you begin.
For those who prefer digital savings, consider a checking account or an automatic transfer setup. You can even open a high-yield savings account to help earn even more on your savings!
Enhancing the Challenge
- Larger Amounts: If you can spare more than just loose change, consider saving higher amounts on a weekly basis or whenever extra cash is available.
- Family Involvement: Involve every family member. Assign each person their own penny jar or bank account to turn it into a fun, family-oriented penny saving challenge.
- Leap Year Adjustment: In a leap year, you’ll have an additional day to add an extra change, making a small but significant difference to your total savings.
Managing Your Savings
- Track Progress: Keep a record of your daily savings, either in a physical ledger or using a mobile app.
- Emergency Fund: Consider using these savings as an emergency fund or as extra cash for end-of-year expenses.
- Savings Goals: Set clear goals, whether it’s for a holiday, a side hustle investment, or just a financial cushion for the next year.
Making It Fun and Sustainable
- Variations: Try different ways to save, like the reverse order method (starting with the highest amount on January 1st and decreasing daily) or the 52-week money challenge for a little extra motivation.
- Little Efforts, Big Impact: Even if it seems like too much effort at times, remember that every little bit contributes to a larger goal. Celebrating small milestones can keep you motivated.
Final Thoughts
The penny savings challenge is not just about how much money you can accumulate over an entire year; it’s about developing a long-term savings habit. It’s a great idea to start at the beginning of the year, but you can jump in at any time. Remember, the best part of this challenge is watching your savings grow from just a small daily contribution to a substantial amount by the last day of the year!
Other Money Savings Challenges
- 50 envelope money savings challenge – You can save $1,275 over 50 days.
- 6 week Christmas savings challenge – You can save $500 in 6 weeks before the holidays.
- 52 week $5 challenge – You save $5 each week (increasing it by $5 weekly) and save ovfer $7,000 in a year