The $5 Bill Challenge: Is Viral Trend the Best Way To Save for a Down Payment?

Scroll through social media, and financial influencers of all kinds will tout that saving money, even small amounts, is the most important step toward wealth. 

It sounds like a no-brainer, but in the current economic climate, many people are finding it harder and harder to set money aside, especially for the big things like a house down payment. 

One trend that’s on the rise again is the $5 bill challenge. The idea is that every time a $5 bill comes your way, you stash it away. Quickly, spare change turns into hundreds of dollars with almost no effort. 

But in the digital age, with cash becoming a dying commodity and home prices steadily climbing, is this trending strategy an effective one for prospective homebuyers looking to make their down payment savings grow? 

Can you use the $5 bill challenge to buy a home?

The American dream of homeownership continues to be challenging for a myriad of reasons, the most pressing perhaps being affordability. 

Home prices are up and inventory is low—and with expenses like student loans, high grocery bills, and tariffs keeping finances locked, many believe that even raising the capital for a down payment is out of reach. 

A recent Raisin 2025 State of Homebuying Report found that a whopping 96% of Americans who plan to buy a home say they face “significant challenges.” That same report found that homeowners save for an average of six years to afford a down payment. 

The $5 challenge can be a low-effort way to get the ball rolling, but the reality is that, on its own, it’s unlikely to be enough to afford a house. 

The premise of the challenge is that every time you receive a $5 bill, you set it aside instead of spending it. How that $5 comes to you can vary—perhaps it’s change from a purchase or even cash back at the store 

But one of the drawbacks of the challenge is that you never know when that $5 will come your way. One week, you may sock away several $5 bills; other weeks may see you come up empty. That inconsistency makes it a poor way to increase your down payment funding. 

Furthermore, even if you were to purposefully put away $5 a day, you’d still be coming up rather empty. If you committed to putting $5 aside daily, by the end of the year, you’d have $1,825. If you did that for the six years most homeowners are committing to for a down payment, you’d have $10,950. Assuming this is enough for a 10% payment, the home would have to cost $109,500.

The current average-priced home as of November 2025 is $415,000.

Lastly, and perhaps most notably at the moment, the likelihood of having cash is slim for most people these days. According to a Capital One survey, 47.8% of respondents make no cash purchases in a typical week and 69% used cash for a few (if any) purchases over the past year. 

The best way to save for a down payment

With that said, if you’re ready to start saving for a down payment, the mindset behind the $5 bill challenge can still be helpful. 

For starters, set up recurring transfers into a dedicated account so saving for your down payment becomes a habit, not an active decision you have to make every day.

If, after a few weeks, you find you’re not financially hurting, increase the transfer amount. Continue doing this for as long as you’re comfortable.

As for where the money should go, Cetin Duransoy, Raisin CEO, recommends to Realtor.com® that an account you can track yourself and put your hands on when your dream home appears is the best. 

“Your down payment fund should stay safe, accessible, and still earn a strong return. High-yield savings accounts or short-term CDs can help your money grow while keeping you ready to move when the right opportunity comes,” he says.

With that in mind, let’s return to the $5 bill challenge. If you commit to consistently putting $5 into a high-yield savings account. Rates at the moment are hovering around 3.6%. That $1,825 would return a gain of $65.70. 

Again, it isn’t the amount of money you’d need for a home, but it’s certainly a step in the right direction. At the end of the day, every little bit helps.