Loud Budgeting, The Cool Way To Save Money and Spend Wisely, Has Become Gen Z's Life Mantra

Managing finances can be overwhelming, especially in such a difficult economic environment. However, for the Gen Z and Millennials, social media is here to help. The new year’s first financial trend, “Loud Budgeting”, has made finances fun for people in 2024. The term coined by TikTok creator Lukas Battle (@lukasbattle) focuses on being more vocal about personal finances and goals on social media, shunning all embarrassment.

All You Need To Know About Loud Budgeting

Lukas Battle posted the video before last year, explaining the term and the logic behind it. He described it as “the opposite of quiet luxury," which was a trend in 2023 that focused on minimal show-off of luxury and wealth.

Lukas added that "loud budgeting" encourages people upfront about their savings goals with friends to allow them to help each other.

For instance, in a situation where people are offered something that would hurt their savings progress, like a social event or a product, then, instead of dodging plans, "loud budgeting" encourages people to be upfront and make it clear that they don’t want to spend money as they are saving for a goal.

"Let's send a message to corporations about the national inflation level, let's take a stand. Also while quiet luxury is about idolizing celebrities, loud budgeting is about the everyday person, the average Joe,” Lukas said in his TikTok video.

How Did Loud Budgeting Turn into a Phenomenon?

The idea of loud budgeting has resonated with people across the globe and Lukas’ video has garnered millions of views. The hashtag #loudbudgeting has got over 12.8 million views on the app. Several other creators have supported the idea with their advice on how to practice loud budgeting and speak honestly about budgetary limits openly.

Libby Brooks (@libbybonthelabel) shared some of her responses to the potential requests she gets for her to spend money.

"Oh sorry, I can't, I don't want to spend $100 going out to dinner with you when I could put $100 in my high-yield savings account," she said citing an example in her video.

"I can't spend $250 on boots this season because I'm saving up for my high-priority savings goals,” she shared another while encouraging people to not be afraid of letting others know about financial goals and savings.

What Social Media Users And Experts Think About Loud Budgeting

In the original video posted by Lukas, several users appreciated his method and some even pointed out they have been "loud budgeting" for years.

"I've been loud budgeting my whole life and that's on growing up poor," one person commented on Lukas's original video.

The video has been greatly impactful as it highlighted the economic stress that people are facing. It served as a wake up call to some who have been struggling to meet their goals.

“'They’re clowns really’, this just changed my perspective, ty” said a user about Lukas’ comment on people following celebrities who are showing off their wealth.

In an Independent UK report, financial coach and author Clare Seal said that she welcomes the move from overblown, get-rich-quick advice online to the more realistic and honest conversations generated by loud budgeting. Rajan Lakhani, who works at financial management app Plum, added that posting about financial goals online can help create a sense of accountability, among peer groups as well.