52-Week Savings Challenge Guide
Saving money may feel like a daunting task, but breaking it down into manageable steps could make it easier and even enjoyable. The 52-week savings challenge is a popular and simple way to build up your savings over the course of a year. By saving a small, gradually increasing amount each week, you could accumulate a substantial sum without feeling the financial strain.
Whether you’re starting from zero or already have some cash tucked away, the challenge could help you make real progress toward your goals. Read on to learn how it works and how to avoid common pitfalls along with tips for staying on track.
What Is the 52-Week Savings Challenge?
The 52-week money-saving challenge is a one-year savings plan that encourages you to make savings a habit, but does so incrementally.
As its name suggests, the challenge asks you to set aside a specific amount of money each week. The first week’s contribution is the smallest. One year later, in week 52, you make your largest deposit just before closing out the challenge.
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How Does the 52-Week Money-Saving Challenge Work?
To start the 52-week savings challenge, make a weekly deposit into a dedicated savings account, envelope, cookie jar, or other fund. Each week’s deposit amount correlates with the week number you’re in.
For week 1, you deposit $1. In week 2, you deposit $2, and so on. In the last week of the challenge, you reach your maximum and final deposit amount of $52.
Below is a 52-week money-saving chart, so you know what to expect:
Week | Amount | Total saved |
Week 1 | $1 | $1 |
Week 2 | $2 | $3 |
Week 3 | $3 | $6 |
Week 4 | $4 | $10 |
Week 5 | $5 | $15 |
Week 6 | $6 | $21 |
Week 7 | $7 | $28 |
Week 8 | $8 | $36 |
Week 9 | $9 | $45 |
Week 10 | $10 | $55 |
Week 11 | $11 | $66 |
Week 12 | $12 | $78 |
Week 13 | $13 | $91 |
Week 14 | $14 | $105 |
Week 15 | $15 | $120 |
Week 16 | $16 | $136 |
Week 17 | $17 | $153 |
Week 18 | $18 | $171 |
Week 19 | $19 | $190 |
Week 20 | $20 | $210 |
Week 21 | $21 | $231 |
Week 22 | $22 | $253 |
Week 23 | $23 | $276 |
Week 24 | $24 | $300 |
Week 25 | $25 | $325 |
Week 26 | $26 | $351 |
Week 27 | $27 | $378 |
Week 28 | $28 | $406 |
Week 29 | $29 | $435 |
Week 30 | $30 | $465 |
Week 31 | $31 | $496 |
Week 32 | $32 | $528 |
Week 33 | $33 | $561 |
Week 34 | $34 | $595 |
Week 35 | $35 | $630 |
Week 36 | $36 | $666 |
Week 37 | $37 | $703 |
Week 38 | $38 | $741 |
Week 39 | $39 | $780 |
Week 40 | $40 | $820 |
Week 41 | $41 | $861 |
Week 42 | $42 | $903 |
Week 43 | $43 | $946 |
Week 44 | $44 | $990 |
Week 45 | $45 | $1,035 |
Week 46 | $46 | $1,081 |
Week 47 | $47 | $1,128 |
Week 48 | $48 | $1,176 |
Week 49 | $49 | $1,225 |
Week 50 | $50 | $1,275 |
Week 51 | $51 | $1,326 |
Week 52 | $52 | $1,378 |
How Much Money Can You Save With the Challenge?
When following the traditional 52-week money saving challenge — starting with $1 during week 1 — you may save a total of $1,378. However, if you chose to modify the challenge by altering the weekly deposit amounts, you could save much more. (And check this out if you’re curious how much the average American has in savings.)
Pros and Cons of the 52-Week Money-Saving Challenge
Although the 52-week savings challenge is effective for some, it’s not the right savings plan for everyone.
Pros
It starts small. The plan asks you to commit only $1 to start the challenge. This micro-level of savings at the beginning helps you gain momentum without feeling overwhelmed.
It has an end goal. There’s a clear finish line you’re working toward. For those who like to check off tasks on a to-do list or visually track progress toward a goal, this challenge helps you stay focused.
It’s easy to remember. The conventional 52-week money-saving challenge uses deposit amounts that mirror the week you’re in. This makes remembering how much to deposit in any given week simple.
It’s customizable. If you have a higher savings goal and the budget to accommodate it, you could easily adapt the plan by increasing your weekly deposit amounts. You could also shorten or extend the timeline until you reach your personal savings goal.
It builds a habit. The regular deposit intervals make saving money part of your routine. The more practice you have at saving money, the easier it is to stick to the plan long-term.
Cons
It takes a long time. Maintaining a savings challenge consistently for an entire year could be difficult, with some participants fizzling out partway through.
It may be hard to automate. Since the weekly deposit amounts don’t remain the same, it’s not as easy to set up automatic deposits into your savings account. This means you have to rely on your dedication to the challenge.
Its largest deposits are during the holidays. Based on the 52-week money-saving chart, the last eight weeks have the highest deposit amounts, totaling $388. This period coincides with the holiday shopping season. If you don’t have good cash flow, this part of the plan might be difficult.
When to Start the Challenge
Starting the 52-week savings plan is simplest at the start of the year, during the first week of January. But you may start it at any time.
The advantage of starting the challenge during the first week of the year is that it’s easier to remember where you are in the savings timeline. For example, if you start at the beginning of January, and it’s now February 1, you know you’re on week five.
The start of the new year is also a popular time to begin because we’re naturally geared to start over and try new things.
Tips for Staying on Track
Assess your budget before starting. Make sure you’re able to financially manage making the weekly deposits for the challenge. Review your nonnegotiable expenses and discretionary spending in the past two months.
Don’t let a missed deposit derail you. Life may get in the way, and you might miss your routine deposit in a given week. Don’t let this derail your motivation — simply make the deposit as soon as you remember, or add it to the following week’s deposit if that date is near.
Adjust the plan to meet your needs. The good part of this challenge is its flexibility. You could change your deposit amounts so they realistically fit your budget, or modify the time frame if you have a goal you’d like to save for, such as a trip.
Invite a friend to join you. There’s no better motivation than accountability. Ask a friend or a group of friends or family members to join you on the 52-week money-saving challenge for external accountability and mutual encouragement.
Why Is Saving Money Important?
Saving money offers a financial safety net if you are faced with an emergency, such as a medical bill or temporary job loss. Not only does a savings fund help you pay immediate expenses, but it may also offer a cushion as you sort out the next steps in the aftermath of a life change.
And, of course, it’s nice when your savings are making a little interest.
Where to Keep Your Savings
It’s a good idea to keep your savings in a secure place where you and others won’t be tempted to access them. Banks, credit unions, and online financial institutions all offer savings deposit accounts. You may open a separate account at the same bank you do business with, or at a new bank and simply transfer money between banks.
Before opening a savings account, ensure that the institution is Federal Deposit Insurance Corporation (FDIC)- or National Credit Union Administration (NCUA)-insured. That way, your money is protected if the bank or institution goes under.
The Takeaway
Taking on the 52-week savings plan helps you establish a long-term savings habit one baby step at a time. Set the money aside in a place that’s secure and separate from your everyday spending money. If you forget to make a deposit on your regular day, don’t stress about it — just catch up as soon as possible. By week 52, you may have a healthy fund — and a new talent for savings.
A high-yield savings account allows you to earn interest on your deposits. Lantern lets you compare savings accounts from a variety of financial institutions offering high interest rates and no monthly fees.
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