Why This Old Fashioned Savings Trend Is Popular on TikTok

Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures our experts’ opinions aren’t influenced by compensation. Terms may apply to offers listed on this page. APY = Annual Percentage Yield

KEY POINTS

  • Cash stuffing, also known as the envelope method of budgeting, is a viral hit on TikTok.
  • Visual learners may find this technique helps them stay motivated as they work to meet their savings goals.

Cash stuffing may help you stay on track with your money goals.

TikTok is full of helpful content for anyone looking to learn more. You can find various financial content that may help you make smarter financial decisions. An old-fashioned savings trend recently went viral on the video-based social media platform. Keep reading to discover why this trend is popular and see if it can help you save more.

Cash stuffing is a win for visual learners

We all have different brains, which means we learn in different ways. This is true even when handling essential financial matters like budgeting and saving. For visual learners, it may be helpful to see how much money they have as they budget their expenses and savings goals.

Cash stuffing is a recent hit on TikTok. What is cash stuffing? This money management method involves stuffing physical cash into labeled envelopes or containers for specific spending and savings goals.

As an example, you might have envelopes for rent, groceries, dining out, and emergency savings. Cash stuffing is also known as the envelope method of budgeting. Some people find this strategy allows them to use their money more effectively.

I think cash stuffing videos are popular for several reasons. Here are a few:

  • It's fun to watch: Since TikTok is a video-based platform, watching other people count and sort their money can be fun. Plus, it can give users ideas on how much money to budget for specific expenses in their own life.
  • It may help with motivation: When it comes to saving or paying down debt, this technique may help you stay motivated as you work on your goals because you can visually see your progress.
  • It may help those who struggle with money management: Some people may overspend on certain purchases because they can't visualize how much money they have budgeted versus what they've spent. This method can be a winning tool for visual learners who want to reduce excessive spending and save more.

What to keep in mind

It's essential to know that this technique doesn't come without flaws. If you keep your money in envelopes and not in your checking account, it's easier to lose. When you keep your money in an FDIC-insured bank account, up to $250,000 of your funds will be protected. If you lose your envelopes, you have no recourse.

Another thing to remember is that you'll miss out on earning interest if you don't keep your savings in a high-yield savings account. You won't earn interest if you keep your savings in an envelope.

If you need help visualizing your budget and savings goals, but want to keep your money in the bank, budgeting apps are a virtual solution that may be helpful. Additionally, many banks have visually friendly tools to help you stay on track as you manage your money.

Do what works best for you

Is cash stuffing something that you should try? Only you can decide if this money management and savings technique will work for you. For some, it offers an excellent way to get organized, visualize their money, and stay on track with their personal finance goals.

I'm a big fan of using rewards credit cards for everyday spending to maximize my rewards. But I understand that many people struggle with managing their credit card spending. If you frequently overspend on credit cards and want better control over your finances, you may want to try cash stuffing.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

Two of our top online savings account picks:

Rates as of Apr 19, 2024 Ratings Methodology
Advertisement
SoFi Checking and Savings Barclays Online Savings
Member FDIC. Member FDIC.
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor

APY: up to 4.60%

APY: 4.35%

Min. to earn APY: $0

Min. to earn APY: $0

Our Research Expert

Related Articles

View All Articles Learn More Link Arrow