A new money-saving trend has caught the attention of the younger TikTok generation: loud budgeting.
While there are plenty of savings challenges to help people budget and put money aside, some people are choosing to chart their own path.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
What is loud budgeting?
It all started, said BuzzFeed, with TikTokker Lukas Battle, who proclaimed earlier this year that quiet luxury – "wearing luxurious well-fitted basics with not a logo in sight" – is out, and loud budgeting is in.
Loud budgeting is the “latest personal finance trend" to go viral on TikTok, explained Bloomberg.
It is the "antidote to quiet luxury", said The Guardian, and a "wholesale rejection of aspirational consumerism" by openly embracing thriftiness.
The trend is "less about deprivation", added BuzzFeed, and more about "deciding what's actually important to you" when it comes to your spending and then shouting about it.
"It's about what I don't want to spend and the everyday person", explained Battle to VoucherCodes. "Put that dollar in your pocket. Choose a stock that is going to rocket".
The idea is to "proudly own your money consciousness", said HuffPost, so you may say no to going to dinner as you are prioritising paying off credit card bills or saving for a mortgage.
However, it also helps if you are rich as those embracing the trend include people who shout about having money, said The Irish Sun, "and the frugal things they do so they don't have to spend it".
Is loud budgeting an effective saving strategy?
Loud budgeting and living within your means "isn't new", explained VoucherCodes, but as Gen Z is "projected to be the world's largest consumer group", they are pretty influential.
It may be "irritating when young people adopt an ancient practice (i.e. parsimony), give it a new name and pretend they invented it", said Polly Vernon in The Times, but it is "embarrassing" not to be a loud budgeter in these "cash-strapped times".
Battle's videos have been viewed millions of times and many already seem "fully on board" with the concept, said Metro.
Rachel Kerrone, a family finance expert at Starling Bank, told the news website that "financial honesty is not only good for your bank balance but your health".
"From sleeping better to more honest friendships to stronger mental health, so many good things can come from talking more openly about your money," she added.
Getting rid of the "shame and stigma" associated with debt and budgeting could help you live a more "financially healthy lifestyle", budgeting expert Andrea Woroch told HuffPost.
But with this trend, it is important to not be "all talk" and to actually take action to improve your finances with a detailed plan.
-
Could Trump run for a third term?The Explainer Constitutional amendment limits US presidents to two terms, but Trump diehards claim there is a loophole
-
Political cartoons for November 28Cartoons Friday's political cartoons include economic diagnosis, climate distractions, and more
-
What does the fall in net migration mean for the UK?Today’s Big Question With Labour and the Tories trying to ‘claim credit’ for lower figures, the ‘underlying picture is far less clear-cut’
-
4 easy tips to avoid bank feesThe Explainer A few dollars here and there might seem insignificant, but it all adds up
-
4 often overlooked home maintenance tasks that could cost you laterThe Explainer A little upkeep now can save you money down the road
-
What are the pros and cons of a Roth conversion for retirement?Pros and Cons By converting a traditional IRA to a Roth IRA, retirees can skip paying taxes on their withdrawals
-
What are portable mortgages and how do they work?the explainer Homeowners can transfer their old rates to a new property in the UK and Canada. The Trump administration is considering making it possible in the US.
-
What’s the best way to use your year-end bonus?the explainer Pay down debt, add it to an emergency fund or put it toward retirement
-
How can you tell if you are ready to retire?the explainer All the preparation you need to sail off into your golden years
-
Can medical debt hurt your credit?The explainer The short answer is yes, though it depends on the credit scoring mode
-
3 required minimum distribution tax mistakes to avoidThe Explainer Missteps in making withdrawals from tax-advantaged retirement accounts can cost you big
