The Viral “$5 Challenge” Might Be The Easiest Way To Save Money

Everyone knows the joy of finding a random five-dollar bill in an old coat pocket. It feels like free money coming your way thanks to a little luck. Now imagine if you kept an eye out for five-dollar bills regularly, sort of like a game. According to TikTok, this is one of the easiest ways to save money.

This trick, dubbed the “$5 Challenge,” has nearly 7 million related posts on the app. The idea is to save every five-dollar bill you see for a set amount of time, whether it’s a couple of months or an entire year. If a five-dollar bill crosses your path, simply snag it and save it.

You might receive $5 in change after buying coffee, as part of a tip at work, or in a birthday card from your grandma. Some fives might be hanging out in your wallet, even if you usually pay for things with a debit card, or a friend might toss you a few to pay you back for dinner.

Once you decide to save all of your fives, it’ll seem like they’re popping up everywhere — and before you know it you could have hundreds, or even thousands, of dollars. Here’s what to know about this money-saving TikTok trend, including how to give it a try.

The Benefits Of The $5 Challenge

The beauty of the $5 Challenge is that you don’t have to go out of your way to participate. There’s no need to start a side hustle or cut back on your spending to save money. The only rule is to collect five-dollar bills. While you can freely spend your ones, 10s, and 20s, all of your fives need to stay stashed.

According to Jennifer Dohm, the head of consumer communications at the financial app Chime, the $5 Challenge is surprisingly lucrative. “It sets an achievable goal that’s small but adds up fast,” she tells Bustle. “A few $5 bills a week put into your savings account makes a big difference.”

On Tiktok, creator @tiffanychayla gave it a try and was shocked by how much she collected. In a video posted early this year, she said she gets a lot of five-dollar bills as someone who works in nightlife doing bottle service. “I literally saved 1K just by saving every single five-dollar bill I earned [in tips],” she said. In her comments, one person said, “This is a dope challenge. I’m doing it.” Another, after seeing her giant wad of money, wrote, “That’s amazing!”

Creator @livinlifeonabudget also saved every five she got for a year and reaped the same benefits. Since five dollars is such a low denomination, it usually doesn’t feel like too much of a strain to set each five aside, especially compared to other, stricter money-saving trends that ask you to save dozens of dollars at a time.

This challenge is helpful if you’re trying to pay off a loan or credit card debt, and it’s an easy way to add more money to your savings account, too, which you can then use for bigger purchases. As a bonus, it inadvertently teaches you to work towards your financial goals, says Dohm, “and it’s also a great tool to help you be more mindful of your money.”

Who Should Give It A Try

While the $5 Challenge is easiest for people who receive cash at work — think servers, baristas, drivers, etc. — it’s beneficial for anyone looking for a simple way to save. “Many people can feel intimidated by making a savings plan or budgeting in general,” says Dohm, but this trend keeps things low-key, and even kind of fun.

If you don’t earn tips, you might enjoy treating the $5 Challenge like a scavenger hunt. As you go about your day, keep an eye out for crisp fivers and stash them in your wallet, in an envelope, or deposit them directly in an ATM. Think of it as a game you’re passively participating in, and you’re bound to have success.

This challenge is also ideal if you enjoy seeing your cash physically add up, even if it’s just a few bills at a time. “TikTok challenges like this one help show that small steps towards financial progress can have big results over time,” says Dohm, and it can inspire you to keep going.

How To Make $5 Work For You

After saving her fives for all of 2023, @tiffanychayla ended up collecting over $1,000. “I encourage you to do the same,” she said in her TikTok. “It was a fun challenge, and it helped me stay disciplined.”

Meanwhile @livinlifeonabudget saved $290 and even @ty.ahmara — who admitted she rarely uses cash — was able to save $185 in a year. In her comments section people encouraged her to put the money directly into a savings account, and that really is the next best step in the $5 Challenge. (Once you’re done admiring your pile, of course.)

While any bank account will do, Dohm recommends depositing your stack of fives into a high-yield savings account so your money will earn interest and continue to add up for you. If you’re new to saving or just want to collect a few extra bucks, this trend is a fun way to get started without much effort.

Source:

Jennifer Dohm, head of consumer communications at Chime