A guide to the penny saving challenge

Saving money doesn't have to start with big, intimidating numbers. The penny saving challenge is proof of that. It's a simple way to grow your savings without feeling the pinch.

If you've struggled to commit to saving in the past, this penny saving challenge might be exactly what you need. You only save a tiny amount at first, gradually increasing each day, which makes the habit easier to stick to. And if you're new to saving, it's a low pressure way to get started.

Ready to explore your savings accounts options? Let's look at how this challenge works. You can also create Savings Pots to help organise and track your goals, making it easier to save for different purposes.

What is the penny saving challenge? 

So, what is the 1p saving challenge? It’s actually refreshingly straightforward. You save a small amount every day, starting with just 1p, and increase by one penny each day for a full year.

On day 1, you save 1p. Day 2 is 2p. Day 3 is 3p. Keep going until day 365, when you'll save £3.65. Add it all up, and you'll have £667.95 by the end of the year.

The beauty is that you barely notice the early days. And by the time the amounts get larger, you've already built the habit and quite a decent savings pot too.

How does the penny saving challenge work?

Each day, you save one penny more than yesterday. By the end of week one, you'll have 28p set aside.

As weeks roll on, amounts grow. By month six, you're saving between £1.50 and £1.80 daily. It gets harder, but because you've built up gradually, it doesn't feel like a sudden jump.

Some people prefer doing the challenge in reverse – starting with larger amounts in January and working down to smaller amounts by December when budgets can be tighter.

For more guidance, find out how to get started with saving.

How much do you save with the penny challenge? 

If you complete the full 365 days, the total comes to £667.95.

While that may not sound life-changing, it’s a meaningful amount built entirely from small, daily actions. It could help cover unexpected expenses, contribute towards an emergency fund, or give you a head start on a future goal. And all without putting pressure on your monthly budget.

Benefits of the penny saving challenge

Easy start with low commitment 

Saving just 1p on Day 1 makes this challenge accessible for almost everyone, especially beginners or those who find traditional saving goals intimidating.

• Builds financial discipline

  Saving daily helps reinforce positive money habits and encourages long-term behavioural change. Habits with rhythm tend to stick.
  
  
• Encourages consistency

  The penny challenge shows how small, consistent changes can add up over time.
  
  
• Flexible for different budgets

  You can adapt the challenge by starting with 2p, 5p, or even £1 per day if your budget allows.
  
  
• Ideal for families or groups

  It’s a fun challenge to do with children, partners, or friends, helping keep each other on track and motivated. 

Thinking about bigger goals? See our tips on how to save for long-term goals.

Who should try the penny saving challenge? 

People new to saving will find this a gentle way to start. There’s no pressure, no complicated maths. Anyone on a tight budget can join in too, since it starts so small.

Families and students can use this challenge to build early saving habits. Parents might find it's a great way to teach children about money, as there's something tangible about watching coins add up.

If you've tried saving before and it didn't stick, the gradual build-up means you're less likely to give up early and more likely to develop consistency.

Step-by-step guide to starting the penny saving challenge 

• Step 1: Decide how much you want to save

  Stick to the traditional 1p method or adjust the challenge to suit your goals.
  
  
• Step 2: Choose where to store your savings

  Use a physical jar, envelope, or a separate digital savings account or savings pots.
  
  
• Step 3: Track your progress

  Use a calendar, spreadsheet, or app to keep yourself motivated.
  
  
• Step 4: Stay consistent

  Make saving part of your daily routine. If you miss a day, simply catch up when you can.
  
  
• Step 5: Celebrate your success

  Completing a year of saving is an achievement worth recognising.

Tips for success with the penny saving challenge

A bit of prep now can save a lot later. These simple habits can help you stay on track throughout the year.

• Use a spare change jar

  Keep all your loose change in a dedicated jar or container. Having your coins in one place makes it easier to grab what you need each day without hunting around the house.
  
  
• Set reminders

  If you're using a physical container, set a daily reminder on your phone. It only takes a few seconds to drop in your pennies, but it's easy to forget when life gets busy.
  
  
• Track your savings in a fun way

  Visual trackers can make the whole experience more rewarding. Whether it's a printed chart on the fridge, a spreadsheet, or a savings app, watching your progress builds momentum and keeps you motivated.
  
  
• Avoid the temptation to skip days

  If you fall behind, don't give up. Simply save a bit more on future days to catch up. The goal is progress, not perfection.

For more ideas, read our guide on how to build savings or learn more about our Save the Pennies Tool.

Get started on your savings today

The penny saving challenge proves small savings can quickly add up. Nearly £670 richer by this time next year? That's a pretty good outcome for something that started with a single penny.

Explore our savings accounts today.

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