Are these new TikTok financial trends worth trying?

The popular video app can inspire healthy financial habits.

Key points

• The TikTok app is known for its viral videos.
• Recently, a series of money challenge videos have emerged to inspire savers to achieve their goals.

It’s common for young children to hide their savings in a piggy bank and watch the money grow right before their eyes. But often, as we get older, we tend to forgo the “put your money in a sock drawer” method of saving and rely on banks to store our money instead.

But the cash safekeeping system may be becoming popular again — and it’s all thanks to TikTok. The viral video app’s #moneychallenge inspires people to find creative ways to physically store their money. And that can lead to a host of healthier financial habits.

When creativity leads to financial security

As a general rule, it is important to have a good amount of cash on hand for emergencies. And traditionally, people have been advised to put that money in a savings account.

These days, savers fill liquor bottles with cash instead of going to the bank. And it’s all thanks to a series of TikTok videos highlighting the various creative ways savers are hoarding money to build a cushion and achieve their financial goals.

The advantage of having cash on hand

While TikTok is known for inspiring its share of not-so-safe challenges, saving money is something we can universally agree is a good thing to do. And while it’s easy to argue that a bank account is the best place to keep money, for some a bottle of liquor (or similar creative container) is a more appealing option.

And you know what? It’s good if it leads to the ultimate goal of spending less and saving more.

In fact, by making saving a game (“let’s see how long it takes to fill that candy jar with coins and bills”), consumers can be more inspired to cut back on spending and save more money. And that’s an important thing at a time when the cost of living is skyrocketing due to inflation and there is a risk of recession.

Additionally, keeping physical cash on hand could lead to smarter spending decisions. Consumers often have an easier time making purchases when all they have to do is swipe a credit card and worry about the consequences later. Handing over a stack of bills is another story. It’s a hard something to do, especially if it took six months to fill a cookie jar with bills from the bottom up.

Not so new trend

While TikTok’s #moneychallenge may be all the rage right now, the reality is that saving and spending with physical cash is nothing new. In fact, it’s similar to the envelope budgeting method, where you allocate money to different expense categories at the start of the month and dip into each envelope as an invoice arrives. (Incidentally, you can check out plenty of TikTok videos along these lines.)

Of course, there’s a downside to having so much cash on hand – think about losing it or missing out on the rewards credit cards are known to give. But if that’s what it takes to promote better savings habits, so be it.

If you’re struggling to save, you might want to check out TikTok and see what inspires you. Whether it’s turning your money into a work of art or hoarding it to the ceiling, if you make the act of saving more fun for yourself, you’ll be more motivated to stick with it. .