Cash-stuffing: A new trend for saving money
PITTSBURGH (KDKA) - It's a question that's long been asked: how do you save for the things you want or the things you want to do?
There's a new rising trend showing up on TikTok called "cash stuffing."
And now, we're not talking mattresses.
It's budgeting in its rawest form, literally stuffing away cash for specific needs.
With each paycheck, the cash stuffers pull out their budget binder or cash-sorting wallet and go to work.
"I was actually happy to see someone implementing a way to be very intentional about the money that they wanted to save for the future," said Rob Wilson, a CMU graduate, and personal finance expert applauding the idea.
However, that applause was not without some criticism.
"I have to say that I'm not necessarily a fan of having all this cash around and putting it in different envelopes," he said. "Anytime you have cash sitting underneath your mattress or around the house somewhere. The danger is that somebody could walk away with it and so it is definitely not the most secure way to keep your hard-earned money."
Clearly, he's an advocate for keeping money in your bank but likes that cash-stuffing shows young people are being intentional about their money.
Now, those sorting wallets aren't readily available. There may be a few online between $15 and $30, but Wilson has better ways to segment your money and do essentially the same thing.
WATCH: Cash-Stuffing And Saving Money
Wilson said there's a satisfaction in watching the cash grow in an envelope.
"I think you can get the same sort of satisfaction by looking at the numbers go up in your online bank account," he said.
While the envelopes are a sort of forced discipline, Wilson said they're a security risk and the whole reason for banks is to keep money safe. He adds you can get the same kind of segmented budgeting from a bank.
"Open up a number of different checking and or savings accounts, and have the money moved into those different accounts for different goals," he explained.
He said to start with a master account, a sort of main savings account which all of your income goes into, then protect your critical bills like mortgages and ultitlies - having a separate account just for those so you can move some money from the main account into the bill pay account.
Once that money is safe, segment electronically.
"I think that's a lot seemed more seamless, and an easier way for you to achieve that than carrying a bunch of cash around," Wilson said.
He points out that you can keep an eye on all of it electronically and watch it grow, but electronically means accessible with a debit card, which is what the cash-stuffers are avoiding.
