Budgeting is very simple, at least in theory. We decide how much we can afford to spend, and then we don’t spend more than that. So, why are so many people in debt?

Though it sounds easy, creating and using a budget is hard. Like any skill, budgeting requires consistent practice, and many people don’t learn how to do it.

Luckily, learning to budget is something you can do at any age. The cash envelope system is one great strategy that can help adults take control of their spending. It is also easy to adapt to teach kids good spending habits.

We’ve broken down the basics of the cash envelope system, answered some common questions about the strategy, and included a range of printables that adults and kids can use to get started.

Contents:

What Is the Cash Envelope System?

How to Organize Your Budget with Cash Envelopes in 5 Simple Steps

Cash Envelopes for Kids

Cash Envelopes for Gift-GivingCash

Envelopes for VacationCash

Envelopes for WeddingsCash

Envelopes for Party PlanningCash

Envelopes for Back to School

Naturally spend less when they use cash. More importantly, cash envelope users are forced to look at their budget every time they make a purchase. This forms what psychologists call a behavioral “trigger” that reinforces the habit of checking one’s budget before making a purchase.

The other powerful quality of the cash envelope system is that it is updated instantly — after a purchase, the envelope automatically shrinks. The budgeter doesn’t need to update and check a document in order to see how much cash they have left; they can just look in their envelope. When the envelope is empty, the budget is spent.

saving about 20 percent of your income, if you’re able.

Step 4: Choose your cash envelope categories.

Make a list of other expenses like groceries, clothes, personal care, etc., and decide how much you want to spend in each one.

Step 5: Create your cash envelopes.

Once you’ve set your budget and chosen your cash envelope categories, it’s time to create the envelopes you’ll use. With these templates, all you need to do is print, fold and tape or glue along the tabs.

You can carry the envelopes on their own or get creative with your accessories. Many people carry their envelopes in expandable coupon organizers, while others opt for specially-made wallets with built-in envelopes that are designed for use with this system.

Monthly Budget Template

Cash Envelope Printable (General)

Food/Grocery Envelope Printable

Entertainment Envelope Printable

Kids’ Budget Template

Kids’ Cash Envelope

Gift-Giving Budget Template

Gift-Giving Cash Envelope

2017 survey found that 74 percent went into debt to pay for a vacation, and the average amount was over $1,100. Cash envelopes are one way to keep yourself in check on your next adventure.

Vacation Budget Template

Vacation Cash Envelope

Wedding Budget Template

Wedding Cash Envelope

Party Budget Template

Party Cash Envelope

Back to School Budget Template

Back to School Cash Envelope





Cash Envelopes Can Help Anyone Become a Budget Pro

Whether you’re teaching your child about finances or you’re looking for a new way to budget, the cash envelope system is a simple, effective way to accomplish your goals. If you’re struggling with debt, it’s essential to identify where you overspend and find a way to limit it.

Cash envelopes are one DIY strategy for gaining control over your finances, which can also help your credit. If you need help though, don’t be ashamed to ask for it. A credit advisor can help you fix mistakes on your credit report, which can lead you to a brighter financial future. With the right tools and support, good financial health is always in reach.

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