Popularized on Tik Tok, Cash Stuffing is a social media savings trend. It is technique of budgeting which recently gained hype typically among Gen Z and Millennials.

Also known as Cash Envelope System, Cash Stuffing involves distributing money in different categories based on one's need and separating (stuffing) it in envelopes or money binders. Once the envelope gets empty, spending in that category is stopped. In exceptional cases, the money can be redistributed. The basic idea behind it is to save more money by cutting down unnecessary expenses. Cash Stuffing is essentially the way our ancestors used to save money, i.e. the time before the world was taken over by digitalisation.

According to Smith School of Business, studies show that physically transferring cash causes emotional distress. Thus, you are more likely to deliberate before making a purchase. In the meantime, a study by MIT found that using credit cards activates reward networks in the brain.

Thus, many people believe that they are more likely to spend mindlessly with credit and debit cards and budgeting through cash stuffing is highly beneficial.

However, others prefer to use digital money and use apps for budgeting as keeping physical money involves risk and the opportunity loss of getting interests.