Podcast Summary
Exploring Online Shopping and Central Banking: The Bank of England manages UK's economy and currency, while Blue Nile offers easy online ring shopping with a discount.
The Bank of England is a significant institution in the UK, serving as the central bank, setting financial policy, controlling inflation, and housing a vast amount of gold. Meanwhile, in a different realm, consider the convenience of designing a unique engagement ring online at Blue Nile, using promo code "listen" for $50 off purchases over $500. Another key point is that crocodiles can't extend their tongues, while UnitedHealthcare offers flexible short-term insurance plans underwritten by Golden Rule Insurance Company. These plans provide budget-friendly coverage for various durations. Lastly, remember that when it comes to choosing a ring for a special moment, the ease and convenience of shopping online at Blue Nile can help you find the perfect one.
Cash is making a comeback as a budgeting tool: During the cost of living crisis, cash is being used more for budgeting, even for mutilated notes. The cash envelope method separates cash into envelopes for different spending categories to help control spending.
Despite the trend of cash disappearing from our lives due to digital payments and the closure of bank branches, cash is making a comeback as a budgeting tool, especially during the cost of living crisis. Sarah John, the chief cashier at an unspecified location, explained that even mutilated notes can still be exchanged for new ones. Meanwhile, Feme, a TikTok user and former debtor, shared her experience of using the cash envelope method to get out of debt and save money. The method involves separating cash into envelopes for different spending categories to help control spending. Claire Barrett, the host of the Money Clinic podcast, also mentioned the resurgence of cash use in the context of the budgeting trend circulating on social media. Overall, while cash may seem old-fashioned in the age of digital payments, it still holds value as a practical tool for managing money and sticking to a budget.
Manage finances effectively with cash stuffing: Write down expenses, create a calendar, withdraw cash, and allocate to categories to manage finances efficiently using cash stuffing method
Cash stuffing is a simple and effective budgeting method where you withdraw your discretionary income in cash and allocate it to different categories in envelopes. This method helps break down expenses, categorize spending, and manage finances more efficiently. To get started, write down all expenses, create a calendar for payments, and withdraw cash for the categories not covered by direct debits. The pros of cash stuffing include its simplicity, ability to help manage expenses, and promote awareness of spending habits. However, it may not be suitable for everyone, as it requires discipline and cash availability. Watching someone's cash count in a video can be hypnotic and motivating, but the real magic happens when you start managing your own finances effectively using this method.
Managing Money with Cash: A Tangible Approach: The 'Card Tappers Anonymous' TikTok community promotes managing money using physical cash in envelopes, helping individuals better understand spending habits and avoid debt. Cash stuffing provides a tangible connection to money, but may not be suitable for everyone, especially those earning good bank interest rates.
For some people, managing money using physical cash in envelopes can be a more effective and psychologically meaningful way to budget and understand their spending habits. This approach, popularized by the TikTok community "Card Tappers Anonymous," can help individuals better manage their money and avoid debt, especially if they lack trust in banks or the banking system. Cash stuffing allows people to have a tangible connection with their money, making the value of each pound or euro more real and concrete. However, this method may not be suitable for everyone, especially those who can earn a decent interest rate on their savings in a bank account. Additionally, there's a growing distrust towards banks, with people feeling that the system is set up against them and that they're constantly in a loop of debt and overdrafts. Sarah John, in charge of the UK's cash supply at the Bank of England, confirms that cash usage is still significant, with every note bearing her signature as a testament to its authenticity. Ultimately, the choice between managing money with cash or through a banking system depends on individual circumstances, goals, and priorities.
Overseeing Cash Transactions at the Bank of England: The Bank of England manages cash production, from design to destruction, and addresses challenges to cash access and usage.
The role of a cash issuer at the Bank of England involves overseeing every aspect of banknote production, from design and printing to distribution and eventual destruction. Despite a decline in cash use during the COVID-19 pandemic, there are still reasons why people continue to prefer cash, particularly for budgeting and in certain venues. The challenge for the Bank of England is to ensure the sustainability of cash transactions as fewer people use cash and ATMs become harder to access. The Bank is working on legislation to address this issue and ensure that people continue to have access to cash with confidence. The speaker also shared her unique experience working at the Bank of England, from her wood-paneled office with a view of the gold bullion yard to her responsibility for managing the gold in the vaults.
Cash as a Store of Value: Though cash usage decreases, its value continues to rise due to its role as a store of value. Older demographics and certain regions heavily rely on cash, while budgeting apps like TikTok popularize cash stuffing.
While cash usage is falling nationally, the value of cash in circulation has never been higher. Approximately 80% of the cash in circulation is being held as a store of value, rather than used for transactions. Older people and those living in certain regions tend to use cash more frequently. Cash stuffing, or budgeting with cash, has gained popularity, particularly among young people, through social media platforms like TikTok. Despite the rise of digital payments, cash remains a preferred method for budgeting and managing finances for many individuals. The Bank of England is committed to keeping cash in circulation, but ensuring access to cash remains a challenge as banks and ATMs close. The cost of living crisis may be contributing to the increase in cash usage as people seek to manage their finances more closely.
Cash use may increase during economic hardship due to a sense of control: The cost of living crisis could lead to a resurgence in cash use as people seek control over their finances, despite the trend of declining cash transactions.
Despite the general trend of declining cash use in the UK, the cost of living crisis may lead to a resurgence in the use of cash as people seek a sense of control and empowerment over their finances. Euphemia McDermott believes that mistrust towards financial institutions is driving the increased popularity of holding cash, a trend that was seen during the 2008 financial crisis. However, the Financial Services Compensation Scheme (FSCS) now guarantees up to £85,000 of deposits, which may provide more confidence in the security of money held in banks. Sarah John from FAME also emphasized the impact of switching to a cash-only lifestyle on budgeting. Despite the overall decline in cash use, the need for a sense of ownership and control over finances may lead more people to turn to cash during times of economic hardship.
Discover Unique Deals and Experiences at PrettyLitter and 1800Flowers: PrettyLitter offers a 20% discount and free cat toy with first order using code 'acast'. 1800Flowers goes beyond gifts, creating products with love and aiming to deliver smiles
Both PrettyLitter and 1800Flowers offer unique deals and experiences for their customers. At PrettyLitter, you can enjoy a 20% discount on your first order and receive a free cat toy by using the code "acast." This offer comes with certain terms and conditions, so make sure to check the site for details. On the other hand, 1800Flowers goes beyond just being a gift-giving destination for birthdays, anniversaries, or "just because" occasions. They put their hearts into every aspect of their business, from their farmers and bakers to their florists and makers. Every product from 1800Flowers is made with love, as they understand that delivering a smile is of the utmost importance. To learn more about PrettyLitter's offer, visit prettylitter.com and use the code "acast." For more information on 1800Flowers and their commitment to spreading joy, check out their website at 1800flowers.com/acast. Remember, a little discount or a heartfelt gift can make a significant difference in someone's day.
