Daniel Grill | Getty ImagesHow cash stuffing worksAfter gaining popularity on TikTok, more young adults are trying the so-called envelope method, or "cash stuffing," to stay on budget and out of debt.
The premise is simple: Spending money is divided up into envelopes representing your monthly expenses, such as groceries and gas.
When the cash in one envelope is spent, you're either done spending in that category for that month, or you need to borrow from another envelope.
Some downsides of keeping cashStashing cash not only forgoes the protections that come with consumer banking, it may also leave you vulnerable to theft.
Vet financial advice from social mediaFor consumers in search of sound financial advice, "there is a tremendous amount of education out there," said Howard Dvorkin, a certified public accountant and the chairman of Debt.com.
Persons:
Daniel Grill, Ted Rossman, it's, McBride, we've, Matt Schulz, Schulz, Howard Dvorkin
Organizations:
FDIC