What Round-Up Saving Actually Accumulates: A Bound on Spare-Change Programmes Under Stated Card Spending

Programmes that round each card purchase up to the nearest dollar and sweep the difference into savings are sold as painless wealth-building. This paper bounds what they can deliver under stated spending assumptions — 68 card purchases a month with a median purchase of USD 24 — simulated over 20,000 months. Rounding to the nearest dollar yields a median of USD 33.86 a month, or USD 406.32 a year; rounding to the nearest five dollars yields USD 169.27 a month. Reaching a USD 1,000 emergency fund from round-ups alone takes 30 months at the one-dollar setting and 6 months at the five-dollar setting. The implied saving rate is 1.40% of card spending — useful as a starter mechanism, arithmetically incapable of being a savings plan. The study is simulated, not measured. SIMULATED, NOT MEASURED.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-11-11
DOI
https://doi.org/10.5281/zenodo.24121733
Primary Topic
Financial Literacy, Pension, Retirement Analysis
Type
article
Field-Weighted Citation Impact
0.00
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article

What Round-Up Saving Actually Accumulates: A Bound on Spare-Change Programmes Under Stated Card Spending

William Alexander Aldred
Zenodo (CERN European Organization for Nuclear Research)
Financial Literacy, Pension, Retirement Analysis
article

What Round-Up Saving Actually Accumulates: A Bound on Spare-Change Programmes Under Stated Card Spending

William Alexander Aldred
article en

Abstract

Programmes that round each card purchase up to the nearest dollar and sweep the difference into savings are sold as painless wealth-building. This paper bounds what they can deliver under stated spending assumptions — 68 card purchases a month with a median purchase of USD 24 — simulated over 20,000 months. Rounding to the nearest dollar yields a median of USD 33.86 a month, or USD 406.32 a year; rounding to the nearest five dollars yields USD 169.27 a month. Reaching a USD 1,000 emergency fund from round-ups alone takes 30 months at the one-dollar setting and 6 months at the five-dollar setting. The implied saving rate is 1.40% of card spending — useful as a starter mechanism, arithmetically incapable of being a savings plan. The study is simulated, not measured. SIMULATED, NOT MEASURED.

Zenodo (CERN European Organization for Nuclear Research)
Financial Literacy, Pension, Retirement Analysis
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