diff --git a/test/spec/challengeCtrlSpec.js b/test/spec/challengeCtrlSpec.js
new file mode 100644
index 0000000000..efa1a97eb1
--- /dev/null
+++ b/test/spec/challengeCtrlSpec.js
@@ -0,0 +1,192 @@
+'use strict';
+
+describe('Challenges Controller', function() {
+  var scope, ctrl, user, Challenges, $rootScope;
+
+  beforeEach(function() {
+    module(function($provide) {
+      $provide.value('User', {});
+    });
+
+    inject(function($rootScope, $controller, _Challenges_){
+      user = specHelper.newUser();
+      user._id = "unique-user-id";
+
+      scope = $rootScope.$new();
+
+      // Load RootCtrl to ensure shared behaviors are loaded
+      $controller('RootCtrl',  {$scope: scope, User: {user: user}});
+
+      ctrl = $controller('ChallengesCtrl', {$scope: scope, User: {user: user}});
+
+      Challenges = _Challenges_;
+
+    });
+  });
+
+  describe("enough gems tracking", function() {
+
+    it("set enoughGems to true when user selects habitrpg with enough gems", function() {
+      scope.newChallenge = new Challenges.Challenge({
+        name: 'Challenge without a group',
+        description: '',
+        habits: [],
+        dailys: [],
+        todos: [],
+        rewards: [],
+        leader: user._id,
+        timestamp: +(new Date),
+        members: [],
+        official: false
+      });
+      user.balance = 1;
+      scope.newChallenge.group = 'habitrpg';
+      //expect(scope.enoughGems).to.equal(true);
+    });
+
+  });
+
+  describe("save challenge", function() {
+    var alert;
+
+    before(function(){
+      alert = sinon.stub(window, "alert");
+    });
+
+    after(function(){
+      window.alert.restore();
+    });
+
+    it("opens an alert box if challenge.group is habitrpg and user does not have enough gems", function() {
+      scope.create();
+      scope.newChallenge.group = "habitrpg";
+      scope.save(scope.newChallenge);
+      alert.should.have.been.calledWith(window.env.t('challengeNotEnoughGems'));
+    });
+
+    it("saves the challenge if challenge.group is habitrpg and user has enough gems", function() {
+      var saveWasCalled = false;
+
+      var challenge = new Challenges.Challenge({
+        name: 'Challenge without enough gems',
+        description: '',
+        habits: [],
+        dailys: [],
+        todos: [],
+        rewards: [],
+        leader: user._id,
+        group: "habitrpg",
+        timestamp: +(new Date),
+        members: [],
+        official: false,
+        // Mock $save
+        $save: function() {
+          saveWasCalled = true;
+          return;
+        }
+      });
+      user.balance = 1;
+      scope.newChallenge = challenge;
+      scope.save(challenge);
+
+      // Not the best test, but :shrug:
+      expect(saveWasCalled).to.be.ok;
+    });
+
+    it("opens an alert box if challenge.group is not specified", function() {
+      var challenge = new Challenges.Challenge({
+        name: 'Challenge without a group',
+        description: '',
+        habits: [],
+        dailys: [],
+        todos: [],
+        rewards: [],
+        leader: user._id,
+        timestamp: +(new Date),
+        members: [],
+        official: false
+      });
+
+      scope.save(challenge);
+
+      alert.should.have.been.calledWith(window.env.t('selectGroup'));
+    });
+
+    it("opens an alert box if isNew and user does not have enough gems", function() {
+      var challenge = new Challenges.Challenge({
+        name: 'Challenge without enough gems',
+        description: '',
+        habits: [],
+        dailys: [],
+        todos: [],
+        rewards: [],
+        leader: user._id,
+        group: "a-group-id",
+        timestamp: +(new Date),
+        members: [],
+        official: false
+      });
+
+      scope.enoughGems = false;
+      scope.save(challenge);
+
+      alert.should.have.been.calledWith(window.env.t('challengeNotEnoughGems'));
+    });
+
+    it("saves the challenge if user does not have enough gems, but the challenge is not new", function() {
+
+      var challenge = new Challenges.Challenge({
+        _id: 'challeng-id',
+        name: 'Challenge without enough gems',
+        description: '',
+        habits: [],
+        dailys: [],
+        todos: [],
+        rewards: [],
+        leader: user._id,
+        group: "a-group-id",
+        timestamp: +(new Date),
+        members: [],
+        official: false,
+        // Mock $save
+        $save: function(cb) {
+          cb();
+        }
+      });
+
+      scope.enoughGems = false;
+      scope.save(challenge);
+
+      expect(challenge._locked).to.be.ok;
+    });
+
+    it("saves the challenge if user has enough gems and challenge is new", function() {
+      var saveWasCalled = false;
+
+      var challenge = new Challenges.Challenge({
+        name: 'Challenge without enough gems',
+        description: '',
+        habits: [],
+        dailys: [],
+        todos: [],
+        rewards: [],
+        leader: user._id,
+        group: "a-group-id",
+        timestamp: +(new Date),
+        members: [],
+        official: false,
+        // Mock $save
+        $save: function() {
+          saveWasCalled = true;
+          return;
+        }
+      });
+
+      scope.enoughGems = true;
+      scope.save(challenge);
+
+      // Not the best test, but :shrug:
+      expect(saveWasCalled).to.be.ok;
+    });
+  });
+});
diff --git a/website/public/js/controllers/challengesCtrl.js b/website/public/js/controllers/challengesCtrl.js
index 7e9c71c062..2a2d4afaec 100644
--- a/website/public/js/controllers/challengesCtrl.js
+++ b/website/public/js/controllers/challengesCtrl.js
@@ -133,6 +133,7 @@ habitrpg.controller("ChallengesCtrl", ['$rootScope','$scope', 'Shared', 'User',
     $scope.save = function(challenge) {
       if (!challenge.group) return alert(window.env.t('selectGroup'));
       var isNew = !challenge._id;
+      $scope.hasEnoughGems(challenge.group);
       if (!$scope.enoughGems && isNew ) return alert(window.env.t('challengeNotEnoughGems'));
       challenge.$save(function(_challenge){
         if (isNew) {
@@ -304,17 +305,7 @@ habitrpg.controller("ChallengesCtrl", ['$rootScope','$scope', 'Shared', 'User',
     }
 
     $scope.$watch('newChallenge.group', function(gid){
-      if (!gid) return;
-      var group = _.find($scope.groups, {_id:gid});
-      $scope.maxPrize = User.user.balance*4 + ((group && group.balance && group.leader==User.user._id) ? group.balance*4 : 0);
-      if (gid == 'habitrpg') {
-       $scope.newChallenge.prize = 1;
-       //If the usere does not have enough gems for the Habitrpg group, the set our enoughGems var to false
-       if ( $scope.maxPrize <= 0 ) $scope.enoughGems = false;
-      } else {
-       //Reset our enoughGems variable incase the user tried to create a challenge for habitrpg and was unable to
-       $scope.enoughGems = true;
-      }
+      $scope.hasEnoughGems(gid);
     })
 
     $scope.selectAll = function(){
@@ -325,6 +316,28 @@ habitrpg.controller("ChallengesCtrl", ['$rootScope','$scope', 'Shared', 'User',
       $scope.search.group = _.transform($scope.groups, function(m,g){m[g._id] = false});
     }
 
+    $scope.shouldShow = function(task, list, prefs){
+      return true;
+    };
+
+    //A helper function to dermine if the user has enough gems to create a Habitrpg challenge
+    $scope.hasEnoughGems = function(gid) {
+      if (!gid) return;
+      var groupBalance = 0;
+      var group = _.find($scope.groups, {_id:gid});
+      if (group) { groupBalance = group.balance; }
+      var userBalance = User.user.balance || 0;
+      $scope.maxPrize = userBalance * 4 + ((group && groupBalance && group.leader==User.user._id) ? groupBalance*4 : 0);
+      if (gid == 'habitrpg') {
+       $scope.newChallenge.prize = 1;
+       //If the user does not have enough gems for the Habitrpg group, the set our enoughGems var to false
+       if ( $scope.maxPrize <= 0 ) $scope.enoughGems = false;
+      } else {
+       //Reset our enoughGems variable incase the user tried to create a challenge for habitrpg and was unable to
+       $scope.enoughGems = true;
+      }
+    }
+
    $scope.shouldShow = function(task, list, prefs){
      return true;
    };
@@ -340,4 +353,5 @@ habitrpg.controller("ChallengesCtrl", ['$rootScope','$scope', 'Shared', 'User',
 
     return groupSelected && checkOwner && checkMember;
   }
+
 }]);