LUBBOCK, Texas — Cash stuffing or envelope stuffing has been around for years and some have even learned from personal finance personality, Dave Ramsey. Due to social media, cash stuffing is largely impacting younger generations.

Generation Z – people who were born between 1997-2012 – are using the method to pay off debt, loans or save for spending items, etc.

“It’s basically taking the paycheck, and you have a budget plan for that money. And you take out some of that money, and you put it in envelopes as a way to control the impulse spending,” said financial coach, Kelli Lytle.

Lytle said it’s important to start off with a budget and from there cash out, all while keeping track of your money.

“It is a way to be aware of how much money you have available to you,” Lytle said.

Matt Darrah learned cash stuffing through Dave Ramsey and said he has been using this method for the last 15 years.

“We started the process, we had a bunch of debt, student loans and house and cars and credit cards and things like that. And so, for us, it was a way to manage how much we spent on things and work on paying off debt,” Darrah said. asked Lytle and Darrah about the risk of keeping money on hand or at their home and they said keeping it in a safe is a good way to keep it protected. Having it on hand poses the risk of losing your wallet so its good not to have your whole savings in cash.

“You typically spend less when you’re actually using cash, it can kind of slow the pace of how you spend your money as a result of having the cash on hand. Whereas if you had your debit card, you would just insert it come out, you’re good,” Lytle said.

Lytle and Darrah said they still use banks but always keep in mind their budget.