Which budgeting method involves the use of placing money in separate packets to meet particular expenses?

The budgeting method that involves placing money in separate packets to meet particular expenses is called the "envelope system." In this approach, individuals allocate a specific amount of cash for different spending categories, such as groceries, entertainment, or utilities, and place the cash into labeled envelopes. When the money in an envelope is gone, no more spending is permitted in that category for the month. This method helps promote discipline in spending and ensures that budget limits are adhered to.