An old-school budgeting method rediscovered by Gen Z has been linked as one of the factors behind a sudden rise of cash use in Australia.
Data collected by the Reserve Bank of Australia (RBA) found cash use increased for the first time in more than a decade in 2025.
The turnaround is in sharp contrast to graphs by the central bank which show cash transactions have steadily declined between 2010 - 2024.
Along with a grass roots campaign to keep cash in the economy, a social media trend about 'cash stuffing' as a budgeting tool is contributing to the demand for cash, with platforms like TikTok awash with hundreds of videos on the subject.
The trend sees people withdraw their whole pay for the month and spread the cash between categorised envelopes, like 'fuel' and 'groceries'. The theory behind it is that handling the actual money makes the spender far more aware of where it is going.
Canstar data insights director Sally Tindall told the Australian Financial Review the method has been popular across generations, but has been taken up on a large scale by young Aussies as a way to physically keep track of spending.
'People's budgets are stretched and they're worried about how on Earth they're going to make it through the next couple of weeks until they get paid. So they are looking for new ways to keep their budget on track,' she said.
Research from Ubank highlighted the scale of the trend, with a survey of Gen Z and Millennials finding 74 per cent of young Aussies are budgeting and 21 per cent of those prefer cash stuffing.
Data released last week by the Reserve Bank of Australia showed cash used increased in 2025 for the first time since 2010. Pictured is Reserve Bank chief Michele Bullock
The data appears to show a resurgence for cash in the Australian economy
The RBA found 15 per cent of all payments in 2025 used cash, up from 13 per cent in 2022.
'We weren't expecting it, that's for sure. Cash is proving to be remarkably resilient,' Ms Tindall said.
The RBA also found three-quarters of Australians carry cash in case of an emergency, like a payment system blackout.
People aged over 65 are still the main users of cash but cash use among those aged 18 to 40 has risen since 2022. Lower-income households also tended to use cash more often but use had increased in households in the top income quartile between 2022 and 2025.
Some of the reasons proponents for cash list as why it should be kept include the hidden fees on tap-and-go payments, the reliance of digital infrastructure that can malfunction, less privacy, and less tech savvy Aussies will be left behind.
NAB retail banking executive Paul Carter said the evidence indicated cash is still part of 'everyday life' for plenty of Aussies.
'It's clear that cash is going to remain an important payment mechanism for much longer than many would have expected,' he said.
More than 500,000 cash transactions are made at NAB ATMs every week, equating to about $8billion worth of withdrawals and $3billion of deposits each year.
Canstar data insights director Sally Tindall said a cash stuffing trend (above) has been taken up by young Aussies as a way to physically keep track of spending
The Reserve Bank of Australia found cash usage (above) is on the rise
The RBA noted its recent findings 'suggest that one-third of Australians would face hardship or major inconvenience if cash was difficult to access or if shops did not accept cash'.
It found more than 70 per cent of cash users said it would cause them 'major difficulties' if they couldn't withdraw cash.
A significant portion of Aussies who don't typically use cash, classified as less than 20 per cent of transactions, also called for cash to remain in circulation.
About 25 per cent of them said they would be negatively affected if they could not withdraw cash.