Want to stash away an extra $1,378 this year? You can get started with just one dollar.
The 52-week challenge is a simple — even fun — way to boost your savings, turning it into a kind of game that you can use to challenge your friends, family or just yourself.
Whether you're a savvy saver or new to the world of personal finance, this challenge is designed for everyone, and you can start at any time of the year.
How does the 52-week challenge work?
Typically, the challenge is to save an increasing amount of money each week for a year, starting with just $1 in week one and adding an extra dollar every week. By the end of week 52, if you haven't withdrawn any of your savings, you'll have $1,378 in your savings account — not including interest earned. While most people start with $1, you can choose whichever small, manageable amount you want and gradually build it up over time. It's like a financial game that turns small steps into a substantial reward.
Do a quick search on TikTok, Pinterest and Instagram, and you'll find many variations of the game, including scorecards you can print off and use to save $5,000, $7,000 or more in a year. Tangerine Clients, on the other hand, can set up aMoney Rulebased on the 52-week challenge that automatically moves the correct amount every week into a Savings Account. No paper required!
The 52-week challenge across Canada
Across the country, individuals from all walks of life embrace the challenge in unique and inspiring ways. Let's find out how they're doing it and what they're saving for.
Method 1: Stuffing cash into envelopes
Saver: Sasha
Sasha, who goes by@cdngirlcashstufferon TikTok and Instagram, uses a fun scorecard to encourage her followers to complete the 52-week savings challenge. In herTikTok video, she outlines her process and encourages participants to create 52 envelopes and label them from 1 to 52. In 2023, her fun twist was to have savers stash away $2,023. She uses a bingo card-like tracker with 52 amounts, and then to finish the challenge, you need to have saved each amount on the card. The amounts range from $10 to $75 in value. So during any pay periods when you don't have the extra cash, you can fill a lower amount envelope, and when you have a little more wiggle room in your monthly budget, you can fill a higher amount envelope.
Method 2: The spreadsheet/chart method
Saver: Tom Drake
Prolific Alberta-based blogger and personal finance expertTom Drakeencourages his challengers to represent their progress with a visual aid. He writes that the easiest way to do this is by using a printable 52-week chart you can fill in each week as you make deposits.His version follows the original 52-week challenge rules, and he cheers readers on to save $1,378 in a year. He also notes that following the challenge is a great mindful money exercise that may help you keep track of your finances in general.
Method 3: The one-month marathon
Saver: Elizabeth & Freddy White Socks
Elizabeth Naumovski, a Toronto-based financial literacy content creator and female empowerment advocate, has a different take on the challenge. She condenses it into amonth-long game where participants save $5 a dayduring November, which is Financial Literacy Month. She features her pet cat, Freddy White Socks, in posts encouraging participants to commit to the 30-day challenge. At the end of the month, they have $150 to top up or start their emergency fund. According to herInstagram account, "The savings challenge was created to make people think about their future savings and emergency funds. The premise is to start small and realize that you can make a huge difference in your future life just by saving $5 per day. If you save $5 per day for one month, you will save $150. Save for one year, and you will save $1,825. Keep up the habit for 10 years, and you will save $18,250."
Method 4: A bigger goal every year
Saver: xtremecouponmom
Aimie Genoux (otherwise known asthe Extreme Couponing Mom) of Richmond Hill, Ontario, is a 52-week challenge veteran. In ablog post, she says, “There's nothing more exciting for me than saving money and a challenge to save money. Each year, I push myself to save more than I did the year before." She goes on to explain that she's saving for a house, retirement and going on a vacation every year.
Ways to approach the 52-week challenge
Ready to dive into the challenge? Here are some variations to choose from:
1. Start small, finish strong:Kick off your savings adventure by beginning with just a small sum in the first week, then increase your savings by a fixed amount each week afterwards. This classic method is easy to manage in the early months but can get more difficult as time goes on.
For instance, if you're starting with $1, you only need to save $10 in the first four weeks, yet in the final four, you're looking at $202. Quite the difference!
2. Reverse the game:If you prefer to front-load your savings, flip the challenge by starting with the highest amount in week one and decreasing it a little every week. This way, you'll tackle the heavy lifting early and breeze through the rest.
3. Make a savings squad:Turn this challenge into a group effort by involving your friends or family. Make it a group challenge where each member saves a specific amount every week. You can even introduce friendly competitions to keep everyone motivated.
4. Automate it:While there's a certain satisfaction to using a paper scorecard and a highlighter, or stuffing cash into 52 colour-coded envelopes, there are online tools that automate the challenge for you, including Tangerine's 52-Week ChallengeMoney Rule.
Why participate in the challenge?
The 52-week challenge can be an excellent strategy for saving towards specific goals. Maybe you have abig vacationplanned for next year and want to set aside at least $1,000 for it. Or perhaps you're near your goals for youremergency fund, but you need that extra push. This challenge can keep you on track and motivated to save without the pressure of putting away a large sum all at once.
Beyond the financial benefits, the challenge helps you develop savings habits that can last well beyond the 52 weeks.
Ready, set, save!
While many people kick off this challenge as a New Year's resolution, you can start it anytime. Whether it's your birthday, the beginning of a new month, or just a regular Monday, you can embark on this savings adventure whenever it suits you best.
The 52-week challenge empowers you to achieve your financial goals in a fun and manageable way. Whether you're saving for a dream vacation, building anemergency fund, or just striving toestablish better money habits, this challenge offers a clear path to success. So, why wait? Start your savings adventure now and watch your financial dreams become a reality.
Insights, advice, suggestions, feedback and comments from experts
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Regarding the concepts mentioned in this article, let's discuss each one in detail:
The 52-Week Challenge
The 52-week challenge is a savings strategy that encourages individuals to save an increasing amount of money each week for a year. The challenge typically starts with a small amount, such as $1, in week one and adds an extra dollar every week. By the end of week 52, if no withdrawals are made, the savings would amount to $1,378, not including any interest earned.
Variations of the 52-Week Challenge
There are several variations of the 52-week challenge that individuals can choose from:
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Stuffing cash into envelopes: Some people, like Sasha (@cdngirlcashstuffer on TikTok and Instagram), use a scorecard and envelopes labeled from 1 to 52. They fill each envelope with the corresponding amount for that week. The amounts can vary, ranging from $10 to $75, allowing flexibility based on available funds.
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The spreadsheet/chart method: Tom Drake, a personal finance expert, suggests using a printable 52-week chart to track progress. Each week, individuals can fill in the chart as they make deposits according to the challenge rules. This method provides a visual representation of progress and can help with mindful money management.
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The one-month marathon: Elizabeth Naumovski, a financial literacy content creator, condenses the challenge into a month-long game. Participants save $5 a day during November, which is Financial Literacy Month. At the end of the month, they would have $150 to top up their emergency fund or start saving for other goals. This approach emphasizes the impact of consistent daily savings over time.
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A bigger goal every year: Some individuals, like Aimie Genoux (known as the Extreme Couponing Mom), aim to save more each year than they did the previous year. This approach allows for continuous improvement and can be tailored to specific financial goals, such as saving for a house, retirement, or annual vacations.
Ways to Approach the 52-Week Challenge
Here are some additional approaches to consider when participating in the 52-week challenge:
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Start small, finish strong: Begin the challenge with a small sum in the first week and increase the savings by a fixed amount each week. This method is easy to manage initially but can become more challenging as the weeks progress. For example, starting with $1 would require saving $10 in the first four weeks and $202 in the final four weeks.
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Reverse the game: If you prefer to front-load your savings, you can flip the challenge by starting with the highest amount in week one and decreasing it slightly every week. This approach allows you to tackle the larger amounts early on and make the later weeks easier to manage.
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Make a savings squad: Turn the challenge into a group effort by involving friends or family members. Each member can save a specific amount every week, and friendly competitions can be introduced to keep everyone motivated.
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Automate it: Online tools, such as Tangerine's 52-Week Challenge Money Rule, can automate the challenge by automatically moving the correct amount into a savings account each week. This eliminates the need for paper scorecards or envelopes and simplifies the process.
Benefits of the 52-Week Challenge
Participating in the 52-week challenge offers several benefits:
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Saving towards specific goals: The challenge can be an excellent strategy for saving towards specific goals, such as a vacation or building an emergency fund. It provides a clear path to achieving these goals by breaking them down into manageable weekly savings amounts.
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Developing savings habits: The challenge helps individuals develop consistent savings habits that can extend beyond the 52 weeks. It encourages regular saving and can contribute to long-term financial well-being.
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Flexibility and motivation: The challenge can be started at any time, allowing individuals to begin whenever it suits them best. It also offers flexibility in terms of the amount saved each week, making it accessible to a wide range of people. The gamified nature of the challenge can provide motivation and make saving more enjoyable.
In conclusion, the 52-week challenge is a popular savings strategy that encourages individuals to save an increasing amount of money each week for a year. There are various approaches and variations to suit different preferences and goals. The challenge can help develop savings habits, provide a clear path to achieving financial goals, and be a fun and manageable way to save.
