Your Money matters: Simple truths behind the TikTok cash stuffing trend

Apparently this budgeting option is loved by millennials (between 25 and 40-year-olds) and there are many reports of how it has helped people save and pay off debt.

So what is this trend that has over 540 million hashtag mentions on TikTok alone?

Financial advice has been trending on TikTok through hashtags such as #EnergyHack (Image: PA Archive/PA Images)

It’s simply the use of physical cash - notes and coins, split between envelopes, to help budget.

'Cash stuffing' has taken the world by storm, but it is nothing new, nor complex.

Of course, the younger members of our families are far more used to paying with their smartphone or smartwatch than going to the ATM and withdrawing cash, especially since the pandemic, but it seems that we’re going retro.

Just one generation or so back we were paid in cash weekly, often in a small brown envelope. Perhaps I’m showing my age here - I make no apology.

This envelope would come into the household, an appropriate amount handed over to “Mum” for housekeeping, and she would divide it accordingly.

Often there was a metal cash box on the dresser with several compartments labelled - electric, rent, food etc, with the weekly cash allocated to the relevant slot so that when the bill was due the money was there to cover it.

Later we progressed to going to the Post Office to buy stamps for gas and electricity, the water rates and the car tax. A variation on the same budgeting method.

So, is cash stuffing really worth getting excited about?

YES, if it is helping a new generation, and beyond, think carefully about their money, how to allocate it, and appreciate that there is only so much to go round, then I am absolutely all for it.

It’s not just millennials, though - good old fashioned cash-based budgeting can benefit anyone - If you want the basics, or a reminder of how you used to do it before tech got hold of you, here goes:

1. Choose your categories and allocate each an envelope. Petrol, groceries, nights out, for example.
2. Decide how much to assign to each category, go to the ATM and place the appropriate amount in the relevant envelope.
3. Only spend what's in that envelope - no more!
4. Add another envelope for saving. This could be with a particular goal in mind - holiday, or new car deposit.
5. Whatever’s left in the spending categories at the end of the week, move into the saving envelope, towards your bigger goal.

It’s not complex, but it is clearly something that is new to many people.

Norfolk-based money coach Kim Uzzell of mymoneymovement.co.uk (Image: @Valentinestudio)

The older readers amongst us may scoff at me talking about something so simple, but why not give your children or your grandchildren the benefit of your experience and get on board with the trend - hashtags and all.

For more from Norfolk-based financial expert Kim Uzzell head to mymoneymovement.co.uk or follow her on Instagram @kimuzzellmoneycoach.

YOUR MONEY MATTERS

Each week the EDP brings you tips and advice to help combat the cost of living crisis...

TIP OF THE WEEK

Worried about debt or rising energy bills? The government is highlighting National Debtline, where free financial advice is available. A host of help is available at nationaldebtline.org or by calling 0808 808 4000, between 9am and 8pm Monday to Friday, or 9.30am and 1pm on Saturdays. An online tool, fact sheets and webchats with advisors are all available.

BARGAIN OF THE WEEK

The Angel Cafe in Diss has launched a Summer Holiday Super Savers Menu to help families during the cost of living crisis. The kids menu is available Tuesday to Friday throughout the summer holidays, with the Baldry's Yard cafe, in Fair Green, open between 9am until 3pm. This includes meals such as beans on toast or egg on toast for £3.50, or sausage, chips and beans for £5. Head to their Facebook page for further details.