52-week savings challenge

What It Means

The 52-week savings challengeSavings challengeA set of simple saving rules followed for a fixed stretch, such as a rising amount each week, to build a savings habit and a balance by the end. See more is a one-year plan where the amount you save rises by $1 each week: $1 in week one, $2 in week two, and so on until $52 in the last week. Added up, the 52 deposits come to $1,378. Fidelity and Experian both describe a reverse version that starts at $52 and drops by $1 a week, which reaches the same total with the biggest deposits out of the way first.

How People Say It

• "I'm on week 30, so this week is $30."
• "We did the reverse one so December would be easy."
• "Just set it to $26.50 a week and forget about it."

The Breakdown

Worked example. How the balance builds through the year, in the classic and reverse versions:

What the result means. The classic version is gentle at the start and hard at the end: the last quarter asks for $598, which lands in October to December for a January start, alongside holiday spending. The reverse version front-loads the same money, so about three-quarters of the total is saved by week 26. A flat $26.50 a week, the option Fidelity and Experian mention for automating it, spreads the effort evenly.

How to start

1. Choose the classic, reverse or flat version.
2. Open or pick a savings accountSavings accountA bank or credit union account for money you're setting aside for later, which earns interest and is insured up to federal limits at insured institutions. See more for it.
3. Set a weekly reminder or an automatic transfer on the same day each week.
4. Catch up a missed week the next week rather than skipping it.

Good to Know

No official body sets rules for this challenge; the version described here, with its $1,378 total, is the one Fidelity and Experian lay out, and the reverse and flat versions come from the same guides. The total is 1 plus 2 plus 3 and so on up to 52, which is 52 × 53 ÷ 2. Keeping the money in a savings account at an FDIC-insured bank protects it up to the insurance limits and keeps it out of everyday spending. If the late-year weeks look too heavy, the reverse or flat version reaches the same amount.

Related Terms and Categories

• Savings challenge

  A set of simple saving rules followed for a fixed stretch, such as a rising amount each week, to build a savings habit and a balance by the end.

• Savings goal

  A specific amount you plan to save by a set date for one purpose, which turns into a monthly or per-paycheck amount to set aside.

• Automatic savings

  Saving that happens on a schedule without a decision each time, through a split direct deposit or a recurring transfer from checking to savings.

• Emergency fund

  Money set aside only for unplanned costs, like a car repair, a medical bill or a lost paycheck, kept where you can reach it quickly.

• Pay yourself first

  Moving a set amount into savings as soon as you're paid, before bills or spending, so saving comes first instead of from what's left.

• Christmas club account

  A savings account you pay into on a schedule through the year, so the balance is ready for holiday shopping when the bank or credit union pays it out.

Saving and investing basics