For many, the new year is a time for a fresh start, making resolutions both personal and professional. But some may also be considering a financial resolution for 2026, whether that be spending less or saving more.
Every year, more people are taking on the ‘1p saving challenge’ to help them do just that, kicking off on the first day of 2026.
The trend rises in popularity every year, helping savers put away over £660 by the end of the year, which they may not even realise has been stored away.
The year-long challenge works by saving 1p on the first day, then 2p on the second day, 3p on the third day, and so on.
By day 30, savers will have £4.64, halfway through the challenge they will have £168.36, and by day 365, they will have saved £667.95.
However, by the 300th day, savers will be putting away over £3 daily, which is more noticeable than just a few pennies. For this reason, some opt to do the challenge in reverse, starting at the £3.65 maximum and working down.
The challenge has been backed by Martin Lewis’ Money Saving Expert (MSE) team, who describe it as a “clever, fun and relatively painless way to amass a surprising sum”.
Former MSE writer Molly Mileham-Chappell described how she and her husband successfully completed the challenge a few years ago, saying: “Completing the challenge alone saved me £667.95 across the full year, so between the two of us we saved £1,335.90 over the 12 months. If you can afford to take part, do give it a go.”
To make the challenge easier, digital bank Monzo will once again enable customers to sign up to take part in the challenge on its app. This will see a certain amount squirrelled away into an instant-access savings account every day automatically.
Those taking part will also be entered into a £10,000 prize draw, providing they successfully complete the challenge by the end of the year.
Marc Sfeir, product director at Monzo said: “Last year, we saw over a million people take part in the Saving Challenge, proving that small steps can lead to big wins.
“For 2026, we’ve made it even more rewarding – with new levels, higher interest on savings, and of course, we had to bring back the chance to win that £10,000. It’s all part of our mission to help people grow their money with confidence and build habits that make their money work harder.”
Customers can start the challenge on the app anytime until 31 January 2026, and are able to withdraw their savings, or pause or stop the challenge, at any point.