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When you’ve got money at loose ends in each area of your budget. It’s linked to a visual concept of shredding a single bank note and trying to pay with the individual parts in different places, with the assumption that each part of the note still holds the same value. It is also linked to the imagery of hair with split ends. (it is worth noting that bank notes can't be used when heavily damaged and cash is starting to become obsolette, this may be linked with it's origin. The term is best used in context.)
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