From budgeting hacks to viral money trends, TikTok has become a go-to place for financial advice—especially for teens learning how to manage their money for the first time.
One trend that has taken off is the 100 Envelope Challenge, a savings method that turns putting money aside into a daily game. But does it actually work for high school students juggling school, sports, part-time jobs, and social life?
Let’s break down what the challenge is, how it works, and whether it makes sense for students.
What Is the 100 Envelope Challenge?
“The 100 Envelope Challenge is a popular savings method where you label 100 envelopes from $1 to $100,” explained Marcus Reynolds, a youth financial educator. “Each day, you pick one envelope and put the matching dollar amount inside.”
For example, if you choose envelope #18, you save $18 that day. After completing all 100 envelopes, you’ll have saved $5,050.
Some people choose envelopes randomly, while others go in order—starting with $1 on day one, $2 on day two, and slowly working their way up.
“This challenge became popular on social media because it makes saving feel less boring and more like a goal you’re working toward,” said Danielle Cruz, a student money coach. “Instead of just ‘saving money,’ you’re completing a challenge.”
For students, the amounts don’t have to be that high. You can adjust the numbers—maybe 25 or 50 envelopes, or saving $1–$20 instead.
“The most important part isn’t the total,” said Alexis Morgan, a budgeting expert. “It’s building the habit of saving consistently.”
Why Is It So Popular?
The envelope method isn’t new, but social media gave it a fresh twist.
“People have used envelope budgeting for decades,” Morgan explained. “The difference is that now it’s presented as a fun challenge instead of a strict budget.”
For teens, that matters. Saving money can feel overwhelming, especially when income from allowances or part-time jobs is limited.
Turning saving into a game can help students:
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Stay motivated
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Think twice before impulse spending
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Develop better money habits early
“When you know you have to save that day, you might skip an unnecessary snack or hold off on buying something you don’t really need,” Reynolds said.
The Benefits for High School Students
One of the biggest advantages of the 100 Envelope Challenge is accountability.
“You’re setting a daily goal,” Cruz said. “That helps students become more aware of how they spend their money.”
Other benefits include:
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Building discipline and consistency
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Learning delayed gratification
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Saving for specific goals like prom, sneakers, college, or a car
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Making money management feel achievable
“This method works especially well for students who like to physically see their progress,” Cruz added. “Watching the envelopes fill up can be really motivating.”
Even smaller versions of the challenge can help students save hundreds of dollars over a few months.
What Are the Downsides?
While the challenge sounds fun, it’s not perfect—especially for teens.
“If you don’t usually carry cash, constantly withdrawing money can be inconvenient,” said Jordan Patel, a financial literacy advocate. “And keeping a lot of cash at home isn’t always safe.”
There’s also the risk of saving too aggressively.
“Students need to be realistic,” Morgan cautioned. “Saving money shouldn’t mean you can’t pay for essentials like lunch, transportation, or school activities.”
Unexpected expenses—like field trips, team fees, or emergencies—can make it hard to save every single day.
“If you miss a day, that doesn’t mean you failed,” Reynolds said. “The goal is progress, not perfection.”
Another downside? Cash sitting in envelopes doesn’t grow.
“When money isn’t in a bank account, it doesn’t earn interest,” Patel explained. “Even a basic savings account is better long-term.”
Smarter Ways to Make the Challenge Work
For students who like the idea but want a safer option, going digital may be the answer.
“Instead of envelopes, you can use a savings account and transfer money daily,” Patel suggested. “Track it in a notes app or spreadsheet.”
Other tips:
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Set a clear goal before you start (college fund, sports gear, graduation expenses)
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Adjust the challenge to fit your income
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Save weekly instead of daily if that works better
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Team up with friends for accountability
“Doing this with friends makes it more fun and keeps you motivated,” Cruz said.
Students can also boost their savings by:
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Cutting back on subscriptions
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Tutoring or babysitting
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Working part-time
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Selling unused items
The Bottom Line
The 100 Envelope Challenge can be a great starter tool for high school students learning how to save—but it’s not one-size-fits-all.
“Social media makes everything look easy,” Reynolds said. “What you don’t see are the days people struggle or fall behind.”
If the challenge helps you save and build better habits, it’s worth trying. If not, that’s okay too.
“The best savings plan is the one you can actually stick with,” Morgan said. “Start small, stay consistent, and focus on what works for you.”
Learning how to manage money now sets you up for success later—long after the envelopes are gone.
