DIY Budget Money Envelopes {a tutorial}

For a number of years now my husband and I have followed a budget and used the envelope system to pay for things in cash.  This last year we kind of fell out of that practice.  So, trying to get back into the routine I pulled out our envelopes and realized one thing I hate about this system…the paper envelopes fall apart lots of use.  So, I decided to pull some fabric scraps out of my bins and make my own 🙂

DIY Budget Money Envelope Tutorial

And an added bonus, they are cute!  These envelopes should last for years and years.  So, if you are like us and use the envelope system, I thought I’d share with you my simple envelope method.

Materials Needed (per envelope):
2 – 8 1/2″ squares of fabric
1 – small scrap of fabric to write the envelope label
1 – 6″ strip of Velcro


**Note – this first one I tried was with a slightly smaller square of fabric and sew down Velcro.  I decided to make it a little bigger and then found a roll of iron on Velcro and trust me…this is the way to go if you have it!  So much faster when you have your assembly line going.

On the right side of one of your squares, separate the Velcro strip and place them 1/2″ down from the top (and up from the bottom) and 1 1/4″ in from each side.  Either sew them down or iron using the manufacturer’s instructions.


On the right side of the second square, place your label.  I just kind of eye-balled them keeping in mind that I was going to use a 1/4″ seam when sewing the squares together.  To sew the label down, I just used a straight stitch a couple of times around close to the edge of the label.


Now place the squares right sides together and sew around each side using 1/4″ seam and leaving approximately a 3″ opening on one side of the squares.


Through the opening you left, pull the fabric right side out.  Using a stiletto poke the corners out to be square and press.


Fold the square in half and stitch along the sides and bottom leaving the top open.


Now you have a cute little fabric envelope that will hold your cash!


I have a couple more categories of envelopes to make, but this is what I have done so far.

Do any of you have tips/tricks for your budgeting and envelope systems?  If so I’d love to hear them!


10 thoughts on “DIY Budget Money Envelopes {a tutorial}

  1. I use the envelope system for extras like vacations and a new sewing machine. I’m totalling going to make some of these as soon as I find some Velcro. Thanks.

  2. Love the envelope system! Dave Ramsey? We found that groceries was the only “envelope” that did not work for us, as we (by we, i mean my husband) kept leaving it at home and being at the checkout till dipping into the checking account messing the whole system up! So now, an old fashioned running total for groceries lol

  3. I think I might make some of these to use with my four grandsons this summer. Fun, Food, Field Trips, Garage Sales, etc. – whatever they come up with. Actually, I think I’ll let them make them with me. 🙂

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