The 1p challenge is a simple savings trick that could save you as much as £667.95 by Christmas 2026 and was previously endorsed by MoneySavingExpert founder Martin Lewis
While many Brits will be recuperating from the financial impact of Christmas and planning their New Year’s bash, there’s a simple savings trick that could safeguard your finances next year.
The 1p savings challenge could help numerous UK residents save over £600 before the next Christmas. The challenge, previously endorsed by MoneySavingExpert founder Martin Lewis, could see you saving as much as £667.95 before Christmas 2026.
The savings challenge involves small daily increments, making it incredibly easy to monitor without significantly denting your spending allowance. To participate in the challenge, savers simply need to set aside a penny each day, which will gradually accumulate into hundreds of pounds ready for 2027.
In 2021, Martin shared with viewers on his ITV show: “There’s a big savings community out there who do this, it’s called the 1p Challenge. Basically, you save a penny on the first day of the year in a jar or piggy bank, 2p on the second, 3p on the third and keep going throughout the year – by the last day of December, you’re saving £3.65, so that would give you £667. 95 in total.”
The penny challenge is a simple yet effective way to save money. The concept involves saving an additional penny each day compared to the previous day.
For example, if you start by saving 1p, then 2p, then 3p a day – this will eventually increase to £3.65 by the end of December, 2026. If you kick off this challenge on New Year’s Day, by the time 31st December 2026 rolls around, you’ll have amassed a total of £667.95.
You have the option to either stash away physical cash in a jar or transfer it into a bank account. Monzo, the digital bank, also promotes this challenge among its customers by offering to automate the process for them.
Alternatively, you could utilise another app that works with your digital banking service to help you set aside money. Comprehensive details about the penny challenge can be found on the MoneySavingExpert website.
Yearly saving plan in detail
- Day 1: Put in £0.01
- Day 2: Put in £0.02
- Day 3: Put in £0.03
- Day 4: Put in £0.04
- Day 5: Put in £0.05
- Day 6: Put in £0.06
- Day 7: Put in £0.07
- Day 8: Put in £0.08
- Day 9: Put in £0.09
- Day 10: Put in £0.10
- Day 11: Put in £0.11
- Total: £0.66
From Day 100 add:
- Day 100: Put in £1.00
- Day 101: Put in £1.01
- Day 102: Put in £1.02
Double the amount on day 200:
- Day 200: Put in £2.00
- Day 201: Put in £2.01
- Day 202: Put in £2.02
Continue until day 300, then add:
- Day 300: Put in £3.00
- Day 301: Put in £3.01
- Day 302: Put in £3.02
Once you reach the final 365th day, add in £3.56 to your savings pot. If the plan has been followed flawlessly, you should have £667.95 to start your New Year’s Day.
