What Is the 1p Savings Challenge?
The 1p Savings Challenge is a simple, fun way to build savings in 2026. The idea is to save 1p on Day 1, 2p on Day 2, 3p on Day 3… and continue until Day 365.
By the end of the year, your tiny daily contributions could total £667.95, a meaningful boost to your emergency fund, holiday budget, or savings goals for 2026.
If you’re looking for more ideas to grow your savings alongside the 1p challenge, check out our guide to small changes that can grow your savings.
Why the 1p Savings Challenge Works
- Achievable Start: Saving just 1p feels possible, even on a tight budget.
- Habit Formation: Daily actions reinforce positive financial behaviour.
- Visible Progress: Watching your savings grow encourages continued effort.
- Psychological Boost: Seeing “pennies” add up to hundreds of pounds is motivating.
Ways to Approach the Challenge
1. Classic Incremental Method
Add 1p more each day, Day 1 is 1p, Day 2 is 2p, up to Day 365. This gradual increase helps build momentum.
2. Reverse Challenge
Start large and finish small: Day 1 save 365p, Day 2 save 364p, etc. Frontloading your savings creates a larger pot early in the year and makes December easier financially.
3. Weekly Version
Instead of saving daily, save weekly – Week 1: £1, Week 2: £2, up to Week 52: £52. This suits people who prefer weekly budgeting.
4. Payday Version
Divide the total annual savings (£667.95) by the number of paydays you get. For example, if you’re paid monthly, save £55.66 each payday. This works well for those who want consistent, manageable contributions.
Tips to Stay on Track
- Automate Transfers: Use a dedicated savings account with standing orders so money moves before you spend it.
- Visual Tracking: Mark each day or week on a chart, or use an app like Plum or Emma – tracking makes progress tangible.
- Pair With Goals: Decide what your total will fund, whether it’s an emergency fund, a holiday, or debt repayment.
- Be Flexible: Missed a day? Make it up later in the week to stay on target.
You can also combine the 1p challenge with other practical ways to save, such as reviewing your subscriptions to cut costs or following winter energy-saving tips.
With Monzo Bank?
If you’re a Monzo user, the 1p Savings Challenge is even easier, and potentially more rewarding. Monzo’s app can automatically move money from your current account into a dedicated Challenge Pot, starting with 1p on day one, 2p on day two, and so on.
Here’s why Monzo can be helpful:
- Automated Savings: Monzo does the daily saving for you, no manual transfers required.
- Pause or Withdraw: You can pause the challenge and catch up later, or withdraw your savings anytime if your situation changes.
- Prize Draw: If you start the 1p Savings Challenge by 11:59:59pm on 31st January 2026 and end the year with at least £667.95 saved in your Challenge Pot, you’ll be automatically entered into a prize draw for a chance to win £10,000.
This prize opportunity adds a fun extra incentive, but the real benefit remains the habit of saving consistently. Even without the prize, completing the challenge gives you a guaranteed savings pot at the end of the year.
Whether you stick to the classic version of the challenge, or use the automation features in Monzo (or another app, such as Plum or Chase), the key is developing sustainable saving habits that make your money work harder for you.
Why It’s Perfect for 2026
The 1p Savings Challenge is more than just putting aside money; it’s a way to build better financial habits. Even small, consistent contributions can:
- Improve your financial discipline
- Reduce reliance on credit cards
- Prepare yourself for unexpected costs
It’s suitable for anyone: beginners, families, or those looking to build momentum after the holiday season. By the end of 2026, the 1p Savings Challenge can be a stepping stone toward larger savings goals and stronger money habits.
Need Debt Advice For 2026?
If you’re feeling overwhelmed by debt or want support planning your finances this year, Angel Advance is here to help.
You can:
- Use our online benefits and debt tools to see what support you may be eligible for.
- Contact our friendly advisers via phone, email, or live chat for confidential guidance.
- Explore debt solutions including Individual Voluntary Arrangements (IVAs), Debt Management Plans (DMPs), and bankruptcy advice.
Whatever your situation, taking action early can make a real difference. Find out how Angel Advance can help you regain control of your finances and plan confidently for 2026.
