What is loud budgeting, and is it worth a shot?
The TikTok trend encourages users to go public with their monetary decisions


TikTok has launched a number of popular trends, from dances to day in the life videos — but the platform’s new financial concept may actually be worth a shot, according to financial experts. It’s called loud budgeting.
The phrase, which was coined by TikToker Lukas Battle in December, "encourages consumers to take control of their finances and be vocal about making money-conscious decisions, rather than modeling purchase behaviors after celebrities and their bottomless pockets," said CNBC. The aim of this enhanced transparency is to encourage accountability and ensure people are spending in line with their financial constraints and long-term goals.
How does loud budgeting work?
"Loud budgeting is all about openness in financial management," said U.S. Bank, as it “involves discussing your financial goals, struggles and strategies loudly and proudly with those around you, breaking the traditional silence surrounding money matters."
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As snapshot of how this might work, said Nerdwallet: "In one cheeky video, Battle gives an example of loud budgeting: Saying 'Sorry, can't go out to dinner, I’ve got $7 a day to live on.'" Instead of fabricating an excuse for why you cannot join your friends or family for an activity, you're opting to be honest about the realities of your financial situation and the decisions you're making to honor it.
What are the benefits of loud budgeting?
Loud budgeting can offer a number of benefits. For one, "making a public declaration to rein in spending helps tighter budgets stick," says The Wall Street Journal. Behavioral finance researchers say that “by going public with austerity plans we will feel greater pressure to follow through.”
You might even end up positively influencing your friends and family, as loud budgeting is “also an easy way to steer friends or family to less expensive activities or gifts," says the Journal. Another upside: It's possible you'll gain tips and tricks from people within your circle that can enhance your savings efforts once you've opened up the conversation about a typically taboo subject.
All of these things can lead to a greater sense of empowerment in your financial life. "It's the creation of a lifestyle that creates real individual value. It's about spending money and allocating resources on what you prioritize in life, and cutting ruthlessly on what you don’t," Yuval Shuminer, CEO of budgeting app Piere, said to CNBC of the loud budgeting approach.
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How can you get into loud budgeting?
If loud budgeting sounds like a trend you would like to participate in, how exactly can you get started? "Start with close family and friends," says U.S. Bank, and "use the loud-budgeting tactic to influence your plans — like suggesting a game night in instead of a dinner out." You might also make an effort to more regularly talk about money, whether that means sharing the "money-saving tips" you're learning or being open about the fact that "you're skipping out on movie night to add funds to a future down payment."
Before informing others of your financial motivations, be sure you have clarity for yourself. "Think about the kind of life you want to live and set money goals accordingly," said Nerdwallet, and remember to "keep your money goals front and center as you navigate the short-term discomfort that might come with having to say 'no' to things that don't align with them."
As you embark on your journey, do not be afraid to ask for help. Consider finding "support in like-minded communities," such as through "groups focused on personal finance on Reddit or Facebook where people are already getting real about their gains and losses," said U.S. Bank. You can also solicit advice from someone in your life whom you trust to help you stay accountable.
Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.
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