1p saving challenge: Savers could make nearly £700 in 2022 staring with just one penny

TikTok user shares money saving method using envelopes

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With the 1p savings challenge, Britons may be able to keep to their financial New Year’s Resolutions as it may not take much effort. The size of the savings which are achievable will depend on what each person can afford.

With this challenge, saving small can make a big difference at the end of the year.

As can be inferred from the name, it is based on setting aside an extra one pence, and this is done over a period of time.

People save 1p on January 1, 2p on January 2 and so on.

This needs to be continued each day throughout the year until they put £3.65 aside on December 31.

By the end of the year Britons could have saved £667.95.

It would be £3.66 on the final day of a leap year, and due to the extra day, a slightly higher savings total could be reached.

It doesn’t matter if people don’t start from the beginning of the month as they can catch up by just adding what they have missed.

So if they start today on January 20, they would need to start with £2.10 and then carry on with 21p the next day.

Provided the person meets their daily savings targets, they should end up with £667.95 in savings by the end of the year in a non-leap year.

It’s also possible to do this savings challenge in reverse.

This means the saver would start with the maximum amount and reduce the size of contributions by one pence each day.

Molly Mileham-Chappell, author of the Money Saving Expert blog, said: “Part of the fun is that the challenge can take a fair bit of discipline.

“Even if you don’t stick to it to a tee, what’s really important here is that you’re thinking about saving and trying to set some money aside.

“You can make the challenge work for you – if you don’t use cash often, see if you can set the money aside using your online banking and vice versa.

“But remember, it’s usually best to pay off debts before you begin to save.”

The money people save could be put in a piggy bank or a coin jar if they are doing it with cash.

Another option to potentially get more is to transfer the money through online banking.

People can then put this in a savings account.

If stored in a savings account people may be able to earn interest on top.

People should check if their bank allows them to transfer small amounts though.

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