Are These New Financial TikTok Trends Worth Trying?

The popular video app may be inspiring healthy money habits.

It's common for young kids to stash their cash savings away in a piggy bank and watch that money grow before their eyes. But often, as we get older, we tend to forgo the "stick your cash in a sock drawer" method of savings and rely on banks to house our money instead. 

But the system of keeping cash on hand may be falling back into favor -- and it's all thanks to TikTok. The viral video app's #moneychallenge is inspiring people to come up with creative ways to physically store their cash. And it may be leading to a host of healthier financial habits.

When creativity leads to financial security

As a general rule, it's important to have a decent chunk of money on hand for emergencies. And conventionally, people have been advised to put that money into a savings account. 

These days, savers are filling liquor bottles with cash instead of heading over to the bank. And it's all thanks to a string of TikTok videos highlighting the various creative ways savers are hoarding money to build themselves a cushion and meet their financial goals.

The upside of having cash on hand

While TikTok has been known to inspire its share of not-so-safe challenges, saving money is something we can universally agree is a good thing to do. And while it's easy to make the argument that a bank account is the best place to keep cash, for some, a liquor bottle (or similarly creative vessel) is a more appealing option.

And you know what? That's fine if it leads to the ultimate goal of spending less and saving more.

In fact, by making savings into a game ("let's see how long it takes to stuff that candy jar with coins and bills"), consumers may be more inspired to cut back on spending and conserve more cash. And that's an important thing at a time when living costs are soaring due to inflation and there's the potential for a recession to hit.

Plus, the act of keeping physical cash on hand could lead to savvier spending decisions. Consumers often have an easier time making purchases when all they have to do is swipe a credit card and worry about the consequences later. Handing over a pile of bills is a different story. That's a hard thing to do, especially if it took six months to stuff a cookie jar with bills from bottom to top.

Not such a new trend

While TikTok's #moneychallenge may be trending right now, the reality is that the act of saving and spending with physical cash isn't new. In fact, it's similar to the envelope method of budgeting, where you allocate cash to different expense categories at the start of the month and dip into each envelope as a bill comes up. (Incidentally, you can check out plenty of TikTok videos along these lines.)

Of course, there's a downside to having so much cash on hand -- think losing it or missing out on the rewards credit cards are known to give out. But if that's what it takes to promote better savings habits, so be it.

If you've been struggling to save, you may want to check out TikTok and see what inspires you. Whether it's turning your cash into a work of art or amassing a pile of it up to your ceiling, if you make the act of saving more fun for yourself, you'll be more motivated to stick with it.