Money saving is a necessary skill. As students, budgeting is something you need to learn pretty quickly. Especially due to the cost of living crisis, any money that you can save is a good thing. This may not be possible for everybody, but saving money is easier than you may think. You may have heard of the 5p money-saving challenge, but may not know what it is. So, to answer the question: what is the 5p money-saving challenge? This article has got you covered. 

What is the 5p money-saving challenge?

5p coins - money saving challenge
Source: Flickr

So, what is the 5p money-saving challenge? Well, simply, it’s a challenge where you save 5p each day, increasing this as you go. So, on day 1, you save 5p, day 2, 10p, and so on. If you do this for an entire year, that could mean you’re saving almost £3400. That is a nice chunk of change right there. Of course, you don’t have to do this for a year. If you did this for a month, you would save £23.25. That may not be much in comparison to a whole year. However, you could use that money to treat yourself to something. 

Who came up with it?

@budgetingmumofficial 5p savings challenge update, this is how I’m planning to save over £3,000 this year and I’m well on my way! I’ve been clearing the house out ready to move and making sure I sell as much as possible. I also work as a waitress part time so I’ve been really strict in saving as much of my tips as I can (I usually waste so much on odd bits and bobs!). I’ve really enjoyed doing the challenge and pushing myself to make as much money to add to it. I also think sharing with you all has helped me to be accountable and stopped me dipping into it! If you still want to join in it’s not too late! You can download this sheet in my website and easily catch up on January! #savingschallenge #5psavingschallenge #pennysavingchallenge #savemoney #moneysavingtips #savingforahouse #fyp #foryoupage #budgetingmum ♬ Sunshine – WIRA

The challenge first appeared on TikTok, where the user @budgetingmum shared this trick. Beth, a mum behind the account, shared this at the beginning of 2023 as a more extreme version of Martin Lewis’ 1p challenge. That follows the same idea, except with 1p instead of 5p. Ultimately you would save a lot less (£667.95 for the whole year) but it’s a more sustainable option. 

What other money-saving challenges could you do?

money saving challenges

If the 5p money-saving challenge isn’t for you, then there are plenty of other savings challenges. Firstly, you could take the 5p/1p challenge but do it in reverse, starting with £18.25 (5p) or £3.65 (1p) and working backwards to 5/1p on the last day. Some other challenges you could do include the £1 saving challenge, which is saving £1 a day for a year, giving you £365 in savings at the end of the year. Another challenge you could take the £1500 challenge on. This involves increasing the amount of money you save by £1 each day of the week and starting again the week after. Doing this for a week would save £28 and for a full 52 weeks would give you £1456 in savings!

Savings challenges without spending money

save money through no spending

Alternatively, rather than saving money directly, you could try a savings challenge that involves cutting things out. For instance, you could try the no-spend challenge – which entails not spending any money outside of the necessities (food shopping/rent/bills) for a month. It doesn’t have to be for a month – you could start out for a week and then go from there. Another challenge you could try is the little vices saving challenge, which involves giving up the things you can live without, like a daily coffee or a weekly takeaway. If you think you’d find it difficult, you could start off by reducing it initially before going completely cold turkey. 

The 5p money-saving challenge is just one of many challenges out there that can help you to save money. Of course, it is not the only savings challenge out there, but its small, step-by-step nature makes it a sustainable option if you’re looking to save some money.  

Saving money is one thing, but having extra money is another. Check out our 54 ways to make some extra money while you’re at university