Are you looking to make some changes in 2023? If beefing up your savings account is one of them, consider trying a savings challenge. These challenges typically ask participants to put aside a certain amount of cash every day until they’ve reached a goal. The challenge turns not spending money into a kind of game, helping people develop better financial habits.
Essentially, a money-saving challenge is a savings plan with a little fun thrown in. While discipline is needed to carry through with the challenge, it feels more like a game than a chore. It’s a less painless, more enjoyable way to develop better financial habits.
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1. Save Your Change Challenge
How It Works
Put any change you receive or find in a jar at the end of each day. Then just let it accumulate for a whole year. While many people use debit cards these days in lieu of cash, we still use cash more than we think. To increase your savings, pair this challenge with the next one below.
Pros and Cons
Pros:
- Steady, reliable way to accumulate savings
Cons:
- Requires challengers to use cash
- Can take time to see significant growth
Who Should Do This Challenge?
Anyone who handles physical cash at some point during a month should try this challenge.
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2. Cash Only Challenge
How It Works
Leave your credit (yes, even cash-back credit cards) and debit cards at home. Instead, use cash for all of your purchases.
Pros and Cons
Pros:
- Cuts down on frivolous spending
- Forces you to think strategically about how to spend your money
Cons:
- Requires bank or ATM trips for most people
Who Should Do This Challenge?
People who are aware they make many small, unimportant purchases should try this challenge.
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3. “Save for Later” Challenge
How It Works
Instead of automatically clicking the “Buy” button on Amazon, hit “Save for Later” for all of your nonessential purchases. Then give yourself a budget and one day a month to buy what you’ve stored in your cart. (Learn about zero-based budgeting.)
Pros and Cons
Pros:
- Enables challengers to still shop on Amazon.
- Helps reduce impulse buys.
- Can foster long-term savings.
Cons:
- Can create a constant urge to spend money if too much time is spent browsing.
- Requires discipline to wait.
Who Should Do This Challenge?
Challengers who buy items from Amazon multiple times a week should practice this challenge.
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4. Meal Planning Challenge
How It Works
Map out each and every meal you’re going to have in a given week. Then at the grocery store, buy only what you need to make those meals.
Pros and Cons
Pros:
- Reduces overbuying and food waste.
- Avoids repeat trips to the grocery store.
- Prevents last-minute “what are we having for dinner?” angst.
Cons:
- Requires extensive planning.
- Can remove spontaneity from cooking.
Who Should Do This Challenge?
Anyone who has the time to cook their own meals should consider this challenge. However, if your job keeps you on the move a majority of the day, then you may want to consider other challenges on this list.
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5. One Streaming Service a Month Challenge
How It Works
Each month, choose one streaming service to watch and ditch the rest.
Pros and Cons
Pros:
- Save money on streaming bills.
- Discover a variety of content you wouldn’t choose under normal circumstances.
Cons:
- Family members may disagree on which service they want each month.
- You won’t always be up-to-date on pop culture.
Who Should Do This Challenge?
Anyone who has multiple streaming apps on their TV or laptop should do this challenge.
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6. Spend Nothing Challenge
How It Works
Aside from essentials, don’t spend any extra money for a set period of time. This includes no app purchases and monthly subscriptions. If you have a spouse or roommate, turn it into a competition by seeing who can go the longest without spending a cent.
Pros and Cons
Pros:
- Quickly reins in spontaneous spending.
- Prompts a reevaluation of needs and wants.
Cons:
- After a month, it can feel stifling and overly restrictive.
Who Should Do This Challenge?
Anyone that needs or wants to quickly save up money should undertake this challenge.
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7. Round-Up Challenge
How It Works
Some banks allow account holders to round up every purchase and put the change into savings. Enroll in such a program and watch the savings increase each week.
Pros and Cons
Pros:
- Easy and painless.
- Savings should accrue at a gradual, predictable pace
Cons:
- Challengers may need to keep close tabs on their bank accounts, since they will be spending more money than they think with each purchase.
Who Should Do This Challenge?
This is a relatively easy challenge to take on. If your primary bank account can handle a little more cash exiting with each purchase, consider tackling this one.
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8. Head-to-Head Challenge
How It Works
This one requires a family member or close friend willing to do a savings challenge with you. The aim is to see who can put the most into savings for a certain time period.
Pros and Cons
Pros:
- Healthy competition can inspire challengers to save more money.
Cons:
- Challengers with different incomes will have different results. You can work around that by competing for what percentage of your monthly income is saved instead of an absolute amount.
Who Should Do This Challenge?
Anyone feeling unmotivated to undergo a savings challenge should undertake the head-to-head challenge.
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9. No Take-Out / Fast Food Challenge
How It Works
Don’t eat out. Make each and every meal at home.
Pros and Cons
Pros:
- You’ll save a lot of money on food.
Cons:
- When you’re tired and stressed, making dinner for your family can be daunting.
Who Should Do This Challenge?
Money saving challengers who recognize that they are spending too much eating out every week should attempt this challenge.
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10. 52-Week Money Challenge
How It Works
With this challenge, you will save $1,378 in one year. In Week 1, put $1 into your savings account. The next week, put in $2. Continue adding a dollar each week for 52 weeks (a full year).
Pros and Cons
Pros:
- It’s an easy way to try increasing your savings.
- You will have over $1,000 in savings after the challenge.
Cons:
- It’s a yearlong commitment.
- Some challengers will want to be more aggressive in their saving.
Who Should Do This Challenge?
Anyone new to saving money should try this challenge first.
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11. Pantry Challenge
How It Works
Before spending anymore money on grocery bills, challengers must make as many meals as they can from what they have in their pantry and freezer.
Pros and Cons
Pros:
- Curbs food waste.
- Can push you to be creative with your cooking.
Cons:
- Meals may be rather quirky or lopsided by the end.
Who Should Do This Challenge?
Anyone with a stuffed pantry should consider this challenge before purchasing additional groceries.
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12. Save 1% of Your Income Challenge
How It Works
The idea is to cut your spending by an amount equal to 1% of your income. If you make $50,000 a year, you would cut $500 from your annual spending. (Learn about the ideal debt-to-income ratio.)
Pros and Cons
Pros:
- For many, cutting 1% may be all too easy.
Cons:
- You may have to get creative with where you find savings.
- If you have already cut out all frivolous spending, this can be a difficult challenge
Who Should Do This Challenge?
Because it involves tracking your spending for up to a year, anyone looking to gain insight into their spending habits will appreciate this challenge.
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13. 26-Week Savings Challenge
How It Works
With each paycheck you receive in a given year, make a deposit into your savings account. (If you don’t have one, learn how to open a savings account.) The idea is to increase the amount you save by increments of $3. So you’ll deposit $3 from your first paycheck, $6 from your second, and so on. By your 26th paycheck — assuming you’re paid twice a month — you’ll deposit $78. Do this all year and you’ll save $1,053.
Pros and Cons
Pros:
- Gradually increases in intensity.
- Doesn’t require you to make too many changes.
Cons:
- You may need to adopt other savings challenges if you want to save more money.
- Those on a tight budget may not have enough room in their paycheck to undergo this challenge for all 26 paychecks
Who Should Do This Challenge?
This is a good challenge for anyone whose income can support savings deposits up to $78.
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14. Weather Wednesday Challenge
How It Works
This is one of the more whimsical challenges on this list. Every Wednesday, see what the high temperature is going to be for your area. Then deposit that amount into your savings account. Your savings will be more aggressive during the summer than in the winter, so you might want to consider a different savings challenge for cold weather!
Pros and Cons
Pros:
- Playful way to save money.
Cons:
- Requires you to have approximately $400 in spare cash each month during the summer months
- People in higher latitudes, which have a milder climate, will save less.
Who Should Do This Challenge?
Anyone who enjoys a little spontaneity in their saving habits should consider this challenge.
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15. Nickel+ Challenge
How It Works
For a year or whatever timespan you choose, make a deposit into a savings account or jar in increments of 5¢. (Learn how to transfer money between banks.) For example, on Day One you add 5¢. On Day Two, add 10¢. If you do this for an entire year, you will save $3,339.75, but your maximum deposit will be only $18.40.
Pros and Cons
Pros:
- Small savings each day.
Cons:
- While it’s easy in the beginning, by the end of the year it may be too aggressive for some budgets.
Who Should Do This Challenge?
Savers who need a little time before they start depositing large amounts should consider this challenge.
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16. Track Your Expenses Challenge
How It Works
It’s easy to lose track of how much you spend each month. Recording and adding up all expenses for 30 days makes you more mindful of your spending.
Pros and Cons
Pros:
- Help you formulate a savings plan for future months.
- Easy to pull off with financial apps that track and categorize your purchases and bills.
Cons:
- Doesn’t actually involve saving money.
Who Should Do This Challenge?
Anyone who doesn’t have a firm grasp on where their money is going should do the Track Your Expenses challenge.
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17. $1 Savings Challenge
How It Works
Each time you receive a $1 bill as change, deposit that dollar into savings.
Pros and Cons
Pros:
- Relaxed way to accumulate savings.
Cons:
- For significant savings, you may need to do this challenge in conjunction with the cash challenge (#2).
Who Should Do This Challenge?
Anyone who uses cash on a regular basis should consider this savings challenge.
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18. $5 Savings Challenge
How It Works
This is an alternate version of the $1 challenge. Therefore, instead of depositing $1 each time you get change, you deposit every $5 bill you get.
Pros and Cons
Pros:
- Expedites the savings process by using a larger bill.
Cons:
- Requires the daily or weekly use of cash to accrue large amounts.
Who Should Do This Challenge?
People who work with cash but who want a more aggressive savings challenge than the $1 Challenge.
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19. Swear Jar Challenge
How It Works
If you’re trying to clean up your vocabulary, what better way than to incorporate a swear jar! Each time you break your own rules, add $1 to the swear jar.
Pros and Cons
Pros:
- Save money and become a better role model for your family.
- Learn to express yourself more creatively.
Cons:
- Once you’ve cleaned up your act, you may need another savings challenge.
Who Should Do This Challenge?
Parents looking to clean up their communication should consider this savings challenge.
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20. Dice Challenge
How It Works
Grab some dice and roll ‘em. Whatever you roll is the amount you deposit into your savings account.
Pros and Cons
Pros:
- The game can be tailored to your specific budget.
- Make your gambling urge work for you instead of against.
Cons:
- If you need to save money aggressively, you may need more dice.
Who Should Do This Challenge?
Anyone who appreciates a playful challenge or loves Las Vegas should consider playing the Dice Challenge.
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Why Is Saving Money Important?
Saving money is important for a variety of reasons, but one of the most crucial is that it helps prevent people from going into debt -– or succumbing to predatory lending practices like payday loans. When you have the money to pay for an emergency, or just necessary big purchases, you don’t have to rely on your credit card. Because of this, you’ll be less likely to have overwhelming debt.
Plus, a strong savings account will enable you to do the things you’ve always wanted: travel, eat at higher end restaurants, upgrade your electronics, or give generous gifts. When you have the money to pay for the things you want, you’ll be more likely to achieve bucket list goals.
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Are Money Saving Challenges Helpful?
Money saving challenges are definitely helpful for many people. In normal life, it’s far too easy to spend mindlessly (without shopping around for a deal) and emotionally (to reward yourself after a rough day). By suspending your ability to make numerous small purchases, you start thinking of bigger and better ways you can spend your money — after you beef up your retirement and emergency savings, of course.
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The Takeaway
Money saving challenges can help make saving money fun and habitual. When done with a little bit of reflection, you may realize your needs list is mostly full of wants. There’s a challenge for every spending weakness: takeout food, streaming services, Amazon impulse buying, and more. You can typically customize each challenge by changing the duration, the amount saved, or both. It’s a gentle way to encourage better financial habits in yourself or a young family member.
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