NEW YORK–In a trend that’s being spread on Tik Tok with a hashtag that has seen more than 900 million views, an old school approach to savings is making a comeback among young consumers—individual paper envelopes filled with cash for specific purchases.
“Returning to cash to control spending may be old fashioned, but in an era of high inflation, a growing number of consumers find that it works,” Yahoo Finance reported.
‘I Had No Idea’
Yahoo profiled several people using the method to make purchases, including Judia Griner, 25, who started "cash stuffing" two years ago when she was a student at Old Dominion University in Virginia. Now, her TikTok account has more than 200,000 followers, Yahoo reported.
"I was like, I need to somehow use my own money to pay off the tuition so I won't be in too much debt," Griner told Yahoo Finance. “I realized that I had no idea how to do that, because I just didn't know how much money I had. I would swipe my card, and I would just kind of cross my fingers and hope that it wouldn't be declined."
Yahoo also profiled 31-year-old Jasmine Taylor, who launched her Tiktok channel in February 2021 and now has more than 620,000 followers. Like Griner, Taylor is paying cash for everything.
“Once they cash in their pay checks, they separate it into different envelopes for specific expenses -- rent, shopping, etc.,” the report stated, noting that on TikTok, the hashtag #cashstuffing has now reached more than 930 million views.
Both Grinerand Taylor shared how their personal finances have vastly improved, including paying down significant debt.
Generational Issue
"It's a problem that my generation kind of suffers from: consumerism and just overspending everything," Griner told Yahoo Finance.
But Jason Howell, a wealth management professor at American University, shared some caution with Yahoo Finance, noting, "2023 is probably the worst time to keep your cash in your house" because it earns no interest and depreciates.
As CUToday.info reported here, BECU in Seattle has taken the old school savings approach and added a modern twist with its new “digital envelopes” offering.
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