Why Generation Z Loves Loud Budgeting
Wake up people, a new financial trend is gaining momentum . Budgeting out loud became the first personal finance trend on social media in 2024, and it has gained popularity among Gen Z and young millennials. To completely move away from the “quiet luxury” culture in which people idolize rich influencers or fake their own wealth for social media influence, loud budgeting is about being as loud and transparent as possible about what you do to spend less and achieve your money saving goals. Here’s what else you need to know about this trend and how it can help you reach your financial goals this year.
What is loud budgeting?
Many of us have internalized shame and discomfort when it comes to “money talk.” As wealth management advisor Brian Ford of Northwestern Mutual explains, vocal budgeting offers just the opposite, encouraging you to “publicly [state] your budgeting efforts and be open about not overspending.”
Loud budgeting gives “people… a sense of camaraderie when making financial decisions,” Ford says. Financial pressure from peers is very real and can lead to overspending when you’re trying to keep up with your peer group, but it can also have a positive effect. As Ford points out, saying no to an expensive dinner or an expensive vacation is much easier when your friends and family know and support your more frugal mindset.
What’s more, opening up conversations about money, even just with family and friends, allows us all to learn from each other’s mistakes and make more informed financial decisions. And once you’ve adopted a high-profile approach to budgeting, you can strive to be more transparent about other taboo topics , such as discussing how much money you make.
How to start budgeting loudly
What sets loud budgeting apart from other financial saving trends is that it involves a public commitment to your goals. “Open and honest dialogue with friends and family may seem difficult,” says Ford, “but you should never feel ashamed for sticking to your financial goals.” If someone in your life suggests spending money you don’t want to, suggest an alternative solution to spend time together. By budgeting loudly, you can make it clear that it’s not about them, but that you’re sticking to your goals.
If possible, it also helps to be proactive when choosing a restaurant and making plans so you don’t have to shoot down 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’re saving. Ford advises publicly setting out specific goals you’re trying to achieve this year, “so you can clearly communicate your intentions to others.”
If you struggle with temptation, it helps to prepare for situations where you know financial peer pressure might arise. Write yourself a rough script so you know what to say in the moment, such as: “I can’t afford this right now, how about [alternative solution]?”
The more transparent you are (i.e. “louder”), the more likely you are to be held accountable, and the more your friends and family will understand what you’re trying to do and hopefully even help. you along the way through encouragement or accountability. This way, instead of feeling the need to spend, you will feel the need to save.
Bottom line
Loud budgeting seems to be resonating with many young people , a timely cultural shift towards greater financial transparency and accountability. If this trend continues to gain momentum in 2024, we may have to get used to more people proclaiming their budgets from the rooftops rather than quietly whispering their spending goals. If you’re crushed by debt or just trying to navigate an inflation-ridden world, this may be just what you need to finally change your spending habits and achieve your financial goals.