What is the 52-week money challenge for savers?

Saving money is always challenging, but in today's uneven economic environment it's even more difficult. 

Inflation is still in the 3% range and more than a full point above the Federal Reserve's target 2% goal. The central bank, meanwhile, is poised to issue its first interest rate hike in multiple years. This comes with household debt hovering near a record high, with average credit card rates sitting over 20% and wages softening and failing to keep pace with inflation. A surging oil price and market uncertainty aren't helping, either. In this environment, keeping your debt levels low and your savings level as high as possible is critical.

But how can you actually accomplish the latter goal? For many savers, it can be something as simple as undertaking select savings strategies, of which the 52-week money challenge is a critical one. And leveraging the right account type while partaking in the challenge can help even further. Below, we'll break down what the challenge specifically entails and which accounts to use (and avoid) to grow your money even further.

Start by seeing how much interest you can be earning with a high-yield savings account now.

What is the 52-week money challenge for savers?

The 52-week money challenge for savers is something that many often start in January, but it's actually one that can be done at any point in the year. Simply start by saving $1 on week one. In week two, increase that to $2 and, in week three, bump it to $3. Each week, save an amount that's $1 more than the prior one. By the end of the year time frame, your last weekly contribution will be worth $52 and you'll have accumulated a total of $1,378. 

While that amount won't make you rich, it can go a long way toward boosting your overall savings, helping to pay off debt or serving as a starting point for an investment you would otherwise have to pass on. The key here, though, is consistency and a budget that will allow you to make larger contributions as the year progresses.

Learn more about the best ways to grow your savings here.

Which savings account types are best for the 52-week money challenge?

While the 52-week money challenge may be simple to understand and easy to see through to its conclusion, utilizing the right account type will be critical in meeting the challenge and potentially even surpassing that $1,378 threshold before the year has concluded. Unfortunately, with a traditional savings account (that employs an average rate of just 0.38%) you'll get little noticeable help, as the money you save will barely grow. 

A high-yield savings account, however, with a top interest rate of 4.10%, will get you toward your savings goal in a much shorter time. Money market accounts, too, which come with top rates near 4%, can suffice and considering the check-writing feature it also has, these accounts can be viable for savers looking to streamline their banking needs with a single account. Just understand that you may need to deposit a baseline level of money into either to get it opened, so starting the challenge with just $1 with these accounts may not be feasible until you meet any minimum deposit requirements.

The bottom line

The 52-week money challenge will require savers to deposit rising amounts of money each week for a full year. But the end result will be worth close to $1,400 and potentially more if savers use a high-yield savings or money market account in the interim. Consider shopping around for these accounts now, then, and take the time to calculate the timeline here as you may be able to cut it significantly or save more money than outlined above when leveraging these accounts in a smart and strategic way.