Why Gen Z Loves ‘Loud Budgeting’
Wake up people, there's a new finance trend getting buzz. "Loud budgeting" has emerged as the first social media personal finance trend of 2024, and it's catching fire with Gen Z and younger Millennials. Making a clean break from away from "quiet luxury" culture—in which people idolize rich influencers or fake their own wealth for social media clout—loud budgeting is all about being every bit as vocal and transparent about what you are doing to spend less and meet your money saving goals. Here's what else to know about this trend, and how it might help you meet your own financial goals this year.
What exactly is loud budgeting?
Many of us have internalized shame and discomfort when it comes to “money talk.” As wealth management advisor Brian Ford from Northwestern Mutual explains it, loud budgeting offers the opposite, encouraging you to "publicly [proclaim] your budgeting efforts and being open about trying not to overspend."
Loud budgeting provides "people...a sense of camaraderie with their financial decisions," says Ford. Financial peer pressure is very real, and can lead you to overspend as you attempt to keep pace with your peer group—but it can also have a positive effect. As Ford notes, saying “no” to an expensive dinner or a pricey vacation is much easier when your friends and family are aware of and onboard with your more frugal mentality.
Moreover, opening up conversations about money, even just with your family and friends, allows all of us to learn from each other’s mistakes and make more informed financial decisions. And once you've adopted the loud budgeting mindset, you can aim for increased transparency around other taboo money topics like discussing how much money you make.
How to get started with loud budgeting
What makes loud budgeting different from other financial savings trends is that it involves a public commitment to your goals. "Having an open and honest dialogue with friends and family might sound difficult," says Ford, "but you should never feel ashamed for sticking to your financial goals." If someone in your life suggests spending money that you do not wish to, offer up an alternative solution to spending time together. Through loud budgeting, you can make it clear this is not about them, but rather about you sticking to your goals.
If possible, it also helps to take initiative with choosing restaurants and making plans, so you can avoid having to reject someone else’s expensive ideas. (Here’s a list of ideas for social plans that won’t break the bank.)
How to make the most of loud budgeting
A big part of loud budgeting is being transparent about the reason you are saving. Ford advises it’s best to publicly identify specific goals you are trying to achieve for the year, "so that you can articulate your intentions clearly to others."
If you're someone who struggles in the face of temptation, it helps to prepare for situations where you know there’s likely to be financial peer pressure. Write yourself a tentative script so you know what to say in the moment—like, “I can’t afford that right now, what about [alternative solution]?”
The more transparent you are (aka the "louder" you are), the more likely you'll be to hold yourself accountable, and the more your friends and family will come to understand what you're trying to do, and hopefully even help you along the way through encouragement or keeping you accountable. That way, rather than feeling the pressure to spend, you’ll feel pressured to save.
The bottom line
As a timely cultural shift towards more financial transparency and accountability, loud budgeting seems to be resonating with many younger people. If the trend continues to gain steam in 2024, we may have to get used to more people proclaiming their budgets from the rooftops, rather than discreetly whispering about their spending goals. If you're crushed by debt or just trying to navigate an inflation-addled world, it may be just what you need to finally shift your spending habits and reach your financial goals.