Budget is allocated to purposes
A new trend in the social network TikTok is intended to help people keep track of their own finances and support them with budget planning. We are talking about so-called “cash stuffing”, which translates as “cash stuffing”. While the current trend appeals to a younger target group in particular, there is a concept behind it that should also be familiar to older generations:
The available money is divided into different envelopes, which are labeled with different purposes such as “shopping”, “party” or “holiday”. Expenditures for products and services in the respective category are then paid directly with cash from the envelope provided and any change is returned to this envelope.
More control over your own finances
With the help of this technology, young people in particular should be able to gain more control and an overview of their finances. After all, the physical issuing of a banknote is sometimes more tangible and associated with greater inhibitions than paying by card. In addition, decisions are made regularly as to the purposes and categories for which the current budget should be used. This ensures that the overview is maintained and that priorities are regularly checked and can be adjusted if necessary.
Cash carries risks
In addition to opportunities, the principle of cash stuffing also entails risks. For one thing, using the method could result in large amounts of cash being kept at home. This could attract thieves, Katharina Lawrence from the Hesse consumer center points out to the Tagesschau. On the other hand, according to the consumer advocate, it is disadvantageous that no interest is paid on the cash.
Editorial office finanzen.net
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