FINANCE
What is loud budgeting? The Gen Z trend for making the most of your money
Instead of framing choices as a lack of funds, loud budgeting encourages people to express their intentional decision to prioritise other financial plans.
Feeling pressured to spend money you don’t have? Ever wished you could decline invitations without feeling guilty or like you’re missing out? Enter loud budgeting, a financial trend gaining traction on social media for its refreshing approach to money management.
Spreading on platforms like TikTok, loud budgeting encourages you to be vocal about your financial aspirations, with less of a focus on limitations. This shift in perspective is crucial. Instead of framing your choices as a lack of funds (“I can’t afford it”), loud budgeting encourages you to express your intentional decision to prioritise your financial goals (“I’m choosing to allocate my money elsewhere”).
The benefits of loud budgeting
This shift can be powerful. A study from Clarify Capital found Gen Z loud budgeters save a significant amount – around $629 per month. They achieve this by setting clear goals, tracking expenses, and making intentional spending decisions. However, the study also highlights a key challenge: fear of missing out (FOMO). 56% of Gen Z loud budgeters reported feeling this way, reflecting the desire to balance financial security with social experiences. However, only 20% Gen Zers know the term loud budgeting, and 1 in 16 claim to be loud budgeters.
“This new trend is definitely changing how young people think about managing their money”, said Michael Baynes, Co-founder and CEO of Clarify Capital. “It’s finding the balance between creating that financial cushion and noting what events are the most important.”
But loud budgeting isn’t just about talking the talk. It’s about setting clear boundaries and confidently saying no to expenses that don’t align with your financial plan. This approach has several benefits. Transparency fosters accountability. Knowing others are aware of your goals can help you stay on track. Additionally, by openly discussing your financial journey, you can create a supportive community and inspire others to be more mindful of their spending habits.
However, it’s important to remember that loud budgeting isn’t for everyone. It requires a certain level of comfort with sharing financial information and the ability to handle potential judgment or social pressure. It’s also crucial to communicate respectfully and avoid feelings of superiority when discussing your financial choices with others.