All About the Hot Money Trend Loud Budgeting

Loud budgeting has taken off on social media. It is a way to manage money where frugality reigns supreme. What is it all about?

Gen Z is trying to embrace a cash-conscious attitude, capitalizing on cutbacks they’re making on increasingly expensive nonessentials. These include eating at restaurants, snacks and lunches out, needless entertainment, streaming services, and even gas.

Subsequently, loud budgeting is all about sharing these savings goals with others. It allows people to be held accountable for unnecessary spending.

The term went viral on TikTok at the beginning of 2024. One video by Lukas Battle, where he describes the concept, has racked up over a million views so far.

The idea of loud budgeting helps people cut back on impulse purchases. Therefore, they are led to make smarter financial choices.

The concept also gives a name to an idea that empowers more people to be comfortable speaking up about their financial goals and makes it OK for people to avoid spending extra money.

Battle discussed the trend, per a report by ABC News. He explained that no one should be ashamed about wanting to save money. “My friend wants to go out to dinner. I’m gonna just text them ‘loud budgeting’ this month. I think financial transparency with your friends is something that you don’t have to be embarrassed about,” Battle said.

Therefore, by saying no to everyday needless purchases, younger people can change their mindset to try and save for more significant items, such as vacations.

However, the idea of budgeting isn’t a new concept. Gen Z’s parents and their parents before them have stretched a dollar for generations. But if this concept helps convince young adults to cut back on excess spending and achieve financial goals, then loud budgeting is a trend to hop on to.