What is “loud budgeting”? Explaining the latest Gen Z money trends

Lifestyle

by Adriana Diaz

“Quiet luxury” and “ruinous spending” are out. “Big budgeting” has begun.

The impending financial trend, where crying poverty becomes the new show of wealth, couldn’t be more perfect for Gen Z, a group known for its love of over-distribution.

Setting a budget out loud is easy. Just start talking very openly about your financial situation and the conditions you’ve set for yourself to reach your goals, to those who ask and those who don’t.

“It’s not ‘I don’t have enough money,’ it’s ‘I don’t want to spend money,'” TikToker Lucas Battle explained in a viral video with more than 1.4 million views.

Battle advised his followers to be honest with friends about their financial situation and encouraged them to openly discuss their budgets and future plans.

In other words, don’t pester them for dinner with some lame excuse that their schedules don’t match up. Instead, send an apologetic text to the group chat saying you’re saving up to pay off your student loans before you turn 30.

Financial expert Julie O’Brien says budgeting out loud can help people struggling to manage their finances feel less alone, empowering them to find new ways to live within their means. I explained that it is possible.

“They say they have no shame or guilt over their financial situation,” O’Brien, senior vice president and head of behavioral science at U.S. Bank, told Money.

“They are simply saying out loud that sound management of money is more important than consumption and the carefully selected unrealistic ideals portrayed.”

According to a survey published by Empower, most Americans (73%) are stressed about finances, and young people are having trouble sleeping because of it.

More than half of Gen Z (56%) and Millennials (51%) say finances keep them up at night, compared to just 37% of Gen X and 20% of Baby Boomers. There is.

Empower reports that many Americans (67%) say they are reviewing their budgets and making cuts because their incomes are not keeping up with inflation. Gen Z is particularly stressed in the housing market, as many live with their parents and student loan payments come back at the end of the year.

Brian Ford, wealth management advisor at Northwestern Mutual, said, “Many people agree with the need to prioritize necessities like food and shelter over disposable expenses, and they loudly talk about budgeting. By joining together, we are giving people a community where making difficult but responsible choices is celebrated.” For money.

Jennifer Dome, Chime’s director of consumer communications, shared with the Post her advice for those setting a high budget for the future:

Save Loud and Proud

• “Picky budgetists” unite. Just because you don’t waste money doesn’t mean you have to become a hermit. Surround yourself with a community that supports your budget planning and joins you for a thrift shop hunt or a cozy evening.
• Let’s start with a small swap: Your financial habits won’t change overnight, but instead of buying candy at the theater or being your own barista in the morning, look for small swaps you can make right away to make bigger swaps. louderover time.
• Facing fear: Turning a blind eye may be easier in the moment, but avoiding facing your financial situation can snowball into bigger problems. The sooner young adults get used to seeing their finances in real time, the better habits they can develop. Hacks like turning on balance notifications and setting up monthly check-ins for yourself can help you stay on track with your financial progress.
• make money work for you: A great way to do that is to start building credit safely. A secured credit card is a great place to start.

This new trend appears to be something of a backlash against the “quiet luxury” wave that swept TikTok at the end of 2023, focusing on understated but expensive elegance.

“‘Quiet luxury’ is about idolizing celebrities, but ‘loud budgeting’ is about ordinary people,” TikToker Battle explained in the video.