Expert’s Tips on Practicing Loud Budgeting With Your Family and Kids

A recent trend gaining traction on TikTok encourages young individuals to actively manage their finances and openly discuss their efforts to save money. Known as loud budgeting, this trend advocates for making mindful decisions regarding spending and prioritizing financial stability.

What is loud budgeting?

The concept of loud budgeting is to resist the temptation to splurge unnecessarily and to promote responsible money management. The 'loud' aspect of this trend involves openly sharing one's intentions and actions with others, often through posts on TikTok. For some participants, loud budgeting means sharing on TikTok that they have opted out of expensive dinner invitations, stating their intention to save that money for other purposes, like a vacation. Others showcase their commitment to budgeting by rejecting the influence of social media influencers, proudly declaring that they are saving money by reusing clothing items already in their wardrobe.

Insights from a family expert

Jennifer Seitz, the Director of Education at Greenlight, a family finance company dedicated to empowering parents in raising financially savvy children, shared her valuable insights on leveraging loud budgeting to benefit your household. Seitz, a Certified Financial Education Instructor (CFEI) and a mother of three draws on her expertise to educate both children and parents on effective money management strategies. As parents, your financial behaviors serve as a model for your children, influencing their money habits. Demonstrating the importance of saving and budgeting is crucial in instilling essential financial principles in them.

Discuss your financial values

As a parent, it is important to tailor discussions about mindful spending to match your child's age and stage of development. Even from a young age, introduce the concept of distinguishing between needs and wants:

-'Needs' include essential items required for daily living, such as food, clothing, and shelter.

-'Wants' encompass items that bring enjoyment but are not necessary for survival, like toys and treats.

As your child matures, he/she will be prioritizing needs over wants. Help them understand that money is finite, meaning they must make thoughtful spending decisions to maximize its value. By discussing why you prioritize certain expenses, such as saving for a family vacation, future education, or long-term financial objectives, you demonstrate responsible money management practices.

Teach kids the importance of financial well-being

Teaching kids about budgeting is a great start for their financial future. A budget is just a plan for money: what comes in, what goes out, and what you save for goals. Here are some tips:

1. Set clear saving goals: Define specific objectives, like saving for a concert ticket or college. Break them into smaller steps to make saving manageable. Track progress and adjust as needed.

2. List expenses: Categorize spending using tools like apps or spreadsheets. Monitor regularly and compare to your budget to find areas to save.

3. Stay consistent:  The key to budgeting success is sticking to your plan. Keep your goals in mind and be vocal about your budgeting efforts.

Give kids opportunities to earn

Kids have various opportunities to earn money, whether at home, in the neighborhood, or within the community, depending on their age. Kids can earn money through chores at home, like washing dishes or taking out the trash, with a set amount for each task. They can also do one-time jobs such as cleaning the garage or raking leaves. Outside the home, they can take on odd jobs like washing cars or dog walking, or explore part-time opportunities in the community to learn responsibility and money management.