STUFF CASH IN ENVELOPES FOR EACH OF YOUR BILLS

THEY said cash was on its way out — then the cost-of-living crisis hit. Now growing numbers of people are going back to basics to help them budget.

The Post Office announced it had seen £801 million in cash withdrawals in July, up more than 20 per cent on a year ago.

There’s even a TikTok sensation now about what they call ‘cash-stuffing’. It’s actually just a reworking of what our mums and grans did for decades — putting cash into envelopes for different bills (rent, gas, food, travel) to help them budget.

It’s a good old-fashioned way of keeping on top of the bills, and it works — as long as you have the discipline not to dip into the ‘ gas’ envelope to buy a takeaway!

Study after study has shown that using cash rather than cards to buy things helps you spend less. That is why, in my money management talks, I tell people who are struggling with debt to cut up their credit cards and just take out cash that they know they can afford at the beginning of the week. That way they can’t overspend and get into even more debt.

It’s a great way to save, too. My friend, Sarah puts every £2 coin she gets into a jar, then uses what she’s collected for her festive spending.

And moneyhelper.org.uk says that giving children their own piggy bank and getting them to count coins and notes helps them learn the value of money and how to use it.