A Credit Karma report shows that Gen Z adults are moving away from credit cards and adopting a traditional budgeting method called cash stuffing
Cash usage among Gen Z has increased by 69% compared to the previous year
Cash stuffing involves taking out expenses in cash to ensure sticking to the budgeted amount
Gen Z feels the pain of expenses when using cash, which helps them adhere to their budget
Gen Z recognizes the current state of personal finance as problematic and seeks better financial control
Cash stuffing entails dividing monthly income into categorized envelopes, including "give," "save," and "spend
The strategy prompts individuals to allocate their earnings into the most effective and sensible envelope option
Gen Z is proud of taking control of their budget and implementing cash stuffing
Using cash adds friction and activates the brain's pain centers, making spending more conscious
Gen Z values the ability to feel their purchases, be in control of their finances, and make smart choices