What’s the Spare Change Challenge and Does It Even Work?
Written by
David Nadelle
Edited by
Nicholas Morine
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Utility bill increases, the rising cost of goods and services and the lure of discretionary spending can make it extremely difficult to put any monthly money aside or build any sort of long-term nest egg. It goes without saying that if you want to save money, then you must stop spending it. Of course, that’s easier said than done.
Directly depositing a fraction of your income into a designated account is a great way to save, but many Americans use savings challenges to motivate them to stack money in a fun and effective way. And with so many challenges out there, as Inspired Budget detailed, you’ll easily find one that suits your spending and saving preferences the best.
One fun challenge you can do alone — or with your family — is the spare change challenge. In this challenge, you gather all your spare change and save it in a jar, piggy bank, or change-counting machine — basically any safe place where you can store coins.
Although you’ll be astounded at how quickly it can add up, the spare change challenge might not be the best way to save. Cash simply changes hands less frequently than ever before and it doesn’t take people posting their woeful savings stories to TikTok — or acting out the calamities of being destitute online — to know it.
Spare Change… What’s That?
Depending on one’s age, piggy banks were many individuals’ introduction to savings. Scrounging up coins and small bills provided a surprising way to grow wealth if you diligently left your funds alone. Given the current proliferation of digital and contactless payments, cash is, arguably, no longer king.
However, if you are a staunch cash user, you’ll accumulate coins passively. If you’ve got the willpower to resist spending them, you’ll eventually save. Socking away bills is an even better way to save if you’re a fan of holding cash.
Alternatives to the Spare Change Challenge
A quick Google search will provide a variety of common daily, weekly and monthly savings challenges alongside rarer tests. For example, as recounted by Trendy Money, a saver in Arizona decided to deposit an amount every week into his savings that matched his city’s high temperature that day — and was very successful in doing so.
You can also try the round up challenge. Anytime you make a purchase, round up to the nearest dollar and pocket the change. For instance, if you spend $17.43 at the store, pocket or transfer 57 cents to your savings.
If you tap to pay, keep a tally of your change throughout the day or week, and then transfer that money over to savings. If you’re paying with cash, stash the change away in a safe location.
Collecting change can be rewarding, but in 2024, savers want convenience. Thankfully, there are a ton of automatic online top-up apps that work as well as any change jar (but without that exciting coin-clink sound!). Make sure to check if there’s any monthly service fees before signing up.
Acorns automatically rounds your purchases up to the nearest dollar and invests the difference into a diversified portfolio of low-cost index ETFs. Chime is a mobile banking app that offers a wide variety of features, including two great automatic savings features: “Save When You Spend” and “Save When I Get Paid.” Qapital focuses on target-based savings goals and set-and-forget-it solutions.
If apps aren’t your thing, you can automatically set money transfers to specialized savings accounts through all traditional banks. If you leave it untouched, you’ll start saving money, albeit at a modest rate.
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