If you’re anything like me, YouTube serves you a steady stream of financial content. Recently, Plum has been hitting me with the same ad over and over: “you can EVEN try the 1p challenge.”
This rubs me the wrong way.
I get the marketing shtick, but the 1p challenge is impractical, childish, and — honestly — annoying. So here are three grown‑up alternatives that do the same job without the gimmicks.
First, let’s do the maths.
The 1p challenge sounds playful:
day 1 you save 1p,
day 2 you save 2p,
day 3 you save 3p…
all the way up to day 365, where you save 365p (£3.65).
What you’re really doing is adding all the numbers from 1 to 365:
1 + 2 + 3 + 4 + … + 364 + 365
It’s just a simple sequence — starts at 1, ends at 365, goes up by 1 each day. Add it all together and you get £667.95 for the year. Spread evenly, that’s £55.66 a month, so let’s call it £56. And instead of tapping pennies into an app every day, here’s what an adult does with that same £56.
1. Pay £56 into an easy‑access savings account
Do it at the start of the month or on payday. If your income is irregular, the cleanest option is a standing order on the 1st. It’s predictable, flexible, and earns more interest than the 1p challenge ever will.
2. Pay £56 into a regular saver
Same idea, but with structure and a higher rate. Regular savers build the automation in for you — and the rates are the best on the market (7% with First Direct, 6.25% with Club Lloyds). They also nudge you into discipline: with First Direct, you only get the full 7% if you save between £25–£300 each month. Miss a month and the rate drops to the basic 1.05%.
3. Pay £56 into an investment account
A monthly contribution into a diversified investment account — via a Stocks & Shares ISA — is the grown‑up version of making your money work harder. Platforms like Vanguard or J.P. Morgan let you automate the contribution and keep it simple. This is the long‑term, wealth‑building version. (General principles only — not personal financial advice.)
Once you see through the ridiculousness of the 1p challenge, better questions appear. Why just £56. What’s the right amount for your finances. Which savings account should you use to start this habit properly. And when you’re ready, which investment platform fits you best.
The 1p challenge is a gimmick. Treat savings like a bill you pay to your future self. You won’t regret it.
