Our youngest dogs might not be learning new tricks, at least when it comes to money.
Gen Zers are taking to social media to flaunt their savings by using what has been dubbed the “cash stuffing” method.
The concept might sound complex, but it simply involves taking cash out of the bank and budgeting offline instead of just transferring money from your savings account to your access account — like an old fashioned piggy bank.
In an effort to stave off overspending, young people are dividing their pay cheques by cashing out at the bank and living off what they need in various aspects of their lives.
Obviously, expenses change depending on the person, but a simple example would be separate cash bundles for fun, bills, groceries and car expenses.
Often, they use cute envelopes or fun stationary — sometimes even folders — to section up their cash. So it becomes a nice aesthetic moment, too. Yes, you can even add a little self-care to your budgeting in 2023.
The idea is that cash is more tangible and taking it out physically means it is harder to spend passively.
One Aussie TikTok creator shared herself counting out her April wage and then filmed herself dividing up the cash.
“Do you get paid in cash?” someone commented.
The TikTok star quickly explained her salary gets “credited” to her bank account but she then withdraws it.
“I budget using my budget spreadsheet and take my money out for cash stuffing for the week,” she replied.
Meanwhile, another creator said she decided to try cash stuffing after seeing so many “success” stories online.
“I’ve meal prepped, managed to cut my spending, and now on to the next step: actually doing the saving,” she told viewers.
She explained the key to her spending less was about money becoming “inconvenient” to spend and it was helping her “avoid” buying stuff.
It’s a saving technique ripped straight from your grandma’s handbook in a time when society is rapidly becoming more cashless.
According to the Reserve Bank of Australia, cash accounted for only 13 per cent of all payments made in 2022 compared to 27 per cent in 2019.
Yet Gen Zers might boldly be putting down their debit cards and heading back to a “cash is king” mentality.
So should we be surprised that Gen Zers are suddenly doing things old-fashioned? In these times, no.
Financial adviser Brenton Tong said it was “easy” to understand why Gen Zers are returning to cash in a cost of living crisis.
“We’ve always turned back to basics when life gets too much. The financial pressure that younger generations face now is pretty massive,” he said.
Tong pointed out that our youngest generation merely expect more from their lifestyles and those costs add up.
“Most of our parents are grandparents had pretty simple expectations in life. A trip or two overseas was considered lucky, going out for dinner was only for special birthdays.”
Tong said these days, the average young person is paying for a more “demanding” lifestyle.
“Yes, you can sit at home and read a book – but that’s like telling your parents to go back to boiling clothes in the copper and wring them out in the roller. You can’t expect society to go backwards.”
Tong said all that “pressure” has resulted in Gen Zers trying a more “tactile” approach to money because they are “overwhelmed”.
So is it worth saving money by getting cash out of the bank?
Tong said it can be an adequate money-saving method if you can commit to it.
“Stuff less money into that spending envelope, and you just have less to spend. If you can stick with it, it’s surprisingly effective,” he said.
He also explained that saving money methods have basically turned into dieting tips at this point. Everyone has a different way they swear by, and it is about working out what is suitable for you.
“The most important part of saving is just to try – it’s really not going to hurt if you give it a go.
“You don’t want to try a savings technique that’s not organic to the way that you think. Similarly to exercise, you need to gel with what you’re doing, or you’re going to hate it and eventually stop,” he advised.
Tong added that once you start a savings plan, “sticking” with it is important, and the best way to do that is to have clear “goals in mind”.
