TikTok ‘cash-stuffing’ budgeting trend contributes to resurgence in ATM use

Cash stuffing was a viral approach to budgeting which helped people to not overspend

A cashless society is not yet upon us - and the UK is in fact seeming to be inching the other way again, according to a report released by Nationwide, with cash withdrawals at ATMs on the rise.

Nationwide Building Society have released a report showing cash usage on the rise for a third year in a row, with close to 33 million cash withdrawals made by bank users during 2024, representing a 10 per cent increase on last year.

In a report of their own at the end of last year, UK Finance highlighted that 1.5m people across the country use cash as their main way of day-to-day spending.

Breaking down further the data on cash withdrawals at Nationwide’s ATMs, taking cash was predictably busiest in the week before Christmas - up nearly two per cent on last year for a total of £97.9m - but also the week leading up to Black Friday saw a 12 per cent rise year on year.

The reasons for cash use being back on an uptrend are not completely clear, but several potential reasons have been highlighted including branch closures and a viral social media trend which people have used to aid their attempts at budgeting.

An uptake in online and mobile banking has mostly been used as the reason for bank branch closures, with Which? reporting that more than 6,000 branches across UK high streets closed between 2015 and 2024, a rate of over 50 per month and accounting for in excess of 60 per cent of all branches which were open at the start of that period.

While cash has become less immediately accessible for some, others have sought to turn to it as a means of managing their money and spending on a month-to-month basis.

The “cash stuffing” trend which rose to prominence across 2023 and 2024 on TikTok and beyond involves allocating specific amounts of money to each envelope labelled for different expenditures: grocery, spending, bills and so on. Then, spending on those different categories is taken directly from the allocated amounts available, helping people visually detail exactly how much they have left.

Modern banking apps can offer a similar digital approach based on ‘pots’ or ‘vaults’, while insurers have warned of the dangers of keeping large amounts of cash in easily accessible places which could be stolen in one go.

(AFP via Getty Images)

Otto Benz, Director of Payments at Nationwide Building Society, said: “The rising cost of living continues to impact people and many are opting to budget with physical money to avoid getting into debt. Nationwide has the largest branch network in the UK, which allows us to support customers who want access to cash, whether that be from our ATMs or over the counter. The resurgence of cash shows why we need to continue having a physical presence on the high street, enabling customers to access their money on their terms, whether digitally or in branch.”

Nationwide pointed out that “vital free services removed from high streets up and down the country” - in other words, branch closures from banks - mean that non-Nationwide customers have been using their cash machines, with a 16 per cent rise in that regard across 2024 compared to the previous year.

The Building Society have committed to maintaining branches in communities where they already have one for at least the next four years.

Alongside cash withdrawals, people have also increasingly used ATMs for depositing cash and other services.

The Covid pandemic had a big impact on cashless spending when many shops and restaurants opted to be contactless only.