Is a cashless system still effective? (using debit cards, not credit cards)
If the point of budgeting by envelope is to rein in your budget with actual segmented cash, won’t debit cards defeat the whole purpose?
If you are just starting out with budgeting, I would recommend using the standard envelope budget system until you get the hang of things. There is something about seeing your money in envelopes (or lack thereof) that helps reinforce the need for this strict method of budgeting.
The cashless version of the envelope system is not a good choice for over spenders UNLESS you are very detail-oriented and vigilant. Most debit cards have overdraft protection so it could get expensive if you aren’t careful to stay within your budget.