Cash-only weekends are becoming a popular money-saving hack among Gen Z. The idea is simple: withdraw a set amount of cash on Friday and make it last through Sunday, without using any cards or digital payments. Financial planner Nadia Vanderhall explains that using cash helps people track their spending better.
“Most people are used to tapping with Apple Pay or Google Pay — you’re not even pulling out your wallet anymore. But that’s the issue: when the money leaves that fast, you’re not tracking what you’re truly spending,” she says. To try a cash-only weekend, check your bank balance and consider your weekend plans.
Take out just enough cash to cover your needs without overspending. Keep the cash in an envelope and avoid using your cards, but keep a backup card for emergencies. Gen Z is also trying other money-saving strategies like the “treat yourself tax” and the “1% rule.” The “treat yourself tax” means matching every impulse buy with an equal deposit into savings.
The “1% rule” advises against making any purchase over 1% of your annual income without waiting 24 hours. These tactics show a shift towards more mindful spending as young people try to manage their finances better in a digital age where spending has become almost too easy. Cash stuffing is another old-school budgeting method that is making a comeback.
Gen Z’s cash-only weekend trend
It involves dividing cash into envelopes labeled for different expenses like groceries, gas, and entertainment. Spending is limited to what’s in each envelope.
Thomas Rudzewick, CEO of Maspeth Federal Savings bank, says cash stuffing helps people regain control over their spending. “When you feel a tangible connection to your money, it almost automatically causes you to set firm boundaries on spending; when you feel that physical dollar bill in your hand, you are more reluctant to let it go,” he explains. However, cash stuffing has some drawbacks.
It can be inconvenient in an increasingly cashless society, and there’s a risk of losing or misplacing cash. It also doesn’t work for online or automated expenses like subscriptions or digital services. Financial institutions can support customers by offering digital budgeting tools that mimic the envelope method.
Some banks have features like real-time spending alerts, automatic savings transfers, and prepaid debit cards with set spending limits. As the July 4th weekend approaches, using cash instead of cards could help Gen Z save hundreds of dollars. Australian influencer Matt Hey says paying with cash makes him more aware of his spending and helps him stick to his budget.
While some argue that cash-only payments can burden bartenders and servers, many Reddit users report that using cash helps them control their spending and avoid leaving their card behind. Overall, switching to cash for recreational spending can help people become more conscious of their purchases, save money, and enjoy holidays with fewer financial worries.
