Gen Z-ers are spilling the tea on why purchasing items with cash helps save money.
The simple money hack that’s been sweeping social media for the last couple of years has been intensifying recently as young Americans grapple with rising costs.
Australian influencer Matt Hey has been an advocate for paying with cash and keeping credit cards in wallets.
He revealed in a TikTok video that using cash for recreational purposes makes him have a ‘more conscious decision’ into what he purchases.
Before learning the trick, he would go over his $100 weekly budget because he did not think about what he was purchasing. Now, he pulls the money out of an ATM and typically has funds leftover to put into his savings.
Another trick is to opt out of tap-to-pay, according to financial planner Nadia Vanderhall.
By going cash-only, anyone celebrating the 4th of July will have a better chance of tracking their payments and eliminating the temptation for impulse buys.
‘You decide how much you want to spend for the weekend, pull that amount in cash on Friday, and that’s all you allow yourself to use through Sunday,’ she told Bustle this week.
Matt Hey revealed that he began saving money after he started making recreational purchases with cash only
Financial planner Nadia Vanderhall revealed that simple money hacks can help shoppers control their spending
Big spenders can try out the trick any time they’d like, all they need is a debit card and a way to withdraw money.
Besides controlling overspending habits, it can also help save money on food or other things, which helps ‘create real awareness.’
Before giving it a go, cardholders are advised to check their bank balance, plan out the week ahead, and withdraw enough money to cover fees without going overboard.
‘A lot of folks budget their fixed costs, but forget about the spontaneous “I deserve it” spending that tends to happen on the weekend,’ Vanderhall explained.
‘This approach helps you feel your spending in real time, keep your non-bill budget in check, and make more intentional choices — all without killing your fun.’
Another money trend known as the ‘treat yourself tax’ can help Americans control spending as it requires matching the cost of impulse buys to a savings deposit.
Americans can also turn to the ‘1 percent rule’ to control over spending, and consider using the ‘one-tenth rule’ when purchasing a car.
Hundreds of Reddit users have already said that they would choose cash over cards any time they entered a bar.
Paying in cash can help control overspending, according to finance experts
By going cash-only, anyone celebrating the 4th of July will have a better chance of tracking their payments and eliminating the temptation for impulse buys
Tap-to-pay using apps like Apple Pay and Google Pay is a common payment method for Gen Z
‘I’ve never once opened a tab at a bar. It honestly seems like such a weird and unusual thing to do to me, paying every time you go to the bar just makes way more sense,’ a Gen Z Reddit member wrote.
‘This is why cash is king. Don’t need to worry about leaving your card at the bar,’ a bargoer responded.
‘Packed college town bar/crowded bar mid bar hop? Pay every time,’ a commenter admitted.
‘In countries that aren’t stupid, you pay for every drink as you get it and that’s that,’ another person wrote.
Others believe cash-only payment methods at bars are ‘unreasonable’ and make it ‘extremely difficult’ for bartenders.
‘It creates a huge amount of pointless work for servers and bartenders, with the exact same outcome for you,’ a Reddit user insisted.
‘It’s also massively inconsiderate and entitled.’
‘This is an a** move on the customer part. You keep it open and close when you leave,’ another person wrote regarding bar tabs.
