Loud Budgeting: Why Experts Recommend Trying This Approach
Many people come from households where money was never talked about. In fact, many of you may hardly ever discuss your finances openly — if at all.
That’s why “loud budgeting,” a new social media trend where you vocalize your financial goals, is trying to dismantle this hush-hush mindset.
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“It’s essentially just being more open and vocal about your financial situation, like when you can’t realistically afford to do something,” said Carter Seuthe, CEO of Credit Summit. “This idea actually started with a joke video on TikTok, but a lot of people — financial experts included — have found that there is actually some merit to it.”
“Money has always been an awkward, taboo topic to discuss, even with our closest friends,” he explained. “And unfortunately that’s led to so many situations of people being forced to spend what they can’t afford. For example: the increasing financial expectations of bridesmaids these days with elaborate parties, destination bachelorette parties, and more. So, with loud budgeting, you can more effectively set clear financial boundaries with people.”
Here are some more reasons experts say you should try this financial trend out for yourself.
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It Helps You Advocate for Yourself
“Loud budgeting is when you are more upfront with yourself and with others about your budget and what you can and cannot afford,” said David Kemmerer, CEO of CoinLedger.
Instead of being guilted into going to a really expensive restaurant with a friend, for example, he said you can tell them that it’s out of your price range for the moment, and then offer a more affordable alternative.
“While you certainly don’t need to be constantly talking about what you can and cannot afford, it’s a great idea to be an advocate for yourself financially when necessary,” said Kemmerer.
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It Removes Shame Around Money
According to Jake Hill, finance expert and CEO of DebtHammer Consolidation, loud budgeting is a great trend for younger people to embrace.
“Especially Gen Z and anyone who is highly active on social media,” he said. “We often think of social media as a place for people to flaunt their wealth — real or imagined — and only show the highlights of their lives, but loud budgeting turns that concept on its head.”
He stated that this trend encourages people to get real about their financial situations, both with their friends and social media audience, and with themselves. “Taking the shame out of concepts such as debt and budget makes it easier for people to embrace their financial situation and work towards a better future with money.”
It Makes You More Accountable
“Loud budgeting is speaking out loud your budget goals and plans to yourself,” explained Timothy Connon, CEO and life insurance agent and CEO of ParamountQuote Life Insurance Advisors. “When you vocalize financial decisions it will trigger several of your senses.”
He noted that this makes you cognitively engage more with your goals and commit better. “It also creates accountability within yourself because you audibly say it and can hear it. It’s similar to speaking affirmations to yourself to help with your own behavior.”
Connon added that it’s considered therapeutic because it helps reduce stress as you are verbalizing your worries and goals. This often results in better perspectives on finances, especially if you’re discussing it openly with family and friends.
It Promotes Mindful Spending
“In the past, talking about money was considered a taboo, especially when it comes to limitations,” said Loretta Kilday, attorney and spokesperson for Debt Consolidation Care.
She noted, however, that loud budgeting has challenged that notion by promoting frank discussions about financial restrictions. This makes it possible for people to comfortably decline incurring costs that do not match their personal financial priorities.
“Loud budgeting isn’t all about being frugal for frugality’s sake but instead promotes mindful spending,” she highlighted. “It means realizing how much your money is worth and deciding where you want to spend it and not just giving in to societal pressure or impulse buying.”
She continued, “For instance, one might openly decide on having home-cooked meals rather than going out to an expensive restaurant or perhaps going to places rather than buying things. Not only does this technique help one in checking their financials, but also fosters better financial culture among friends through making money talks more normal.”
It Creates Greater Financial Literacy
In order to ensure that your budgeting is loud enough, Kilday said you must have a sturdy framework that will help you in coming up with your financial goals.
“This does not mean eliminating all expenditures but alternatively making deliberate purchases that are in line with your future intentions,” she said.
When you take this path, besides having power over your wallet, she noted that you may also end up encouraging other individuals to re-evaluate their shopping preferences. “It marks an advancement towards an increasingly economically knowledgeable and self-sufficient community.”
It Destigmatizes Money Discussions
Joe Chappius, financial planner and tax expert at TaxClimate, said the new trend allows you to directly tell people why you’re making a financial decision, instead of hiding the fact that you’re struggling or are budgeting your money. “The idea is to promote transparency and destigmatize discussions about money matters.”
By being loud about your budgeting choices, he said you’re holding yourself accountable and contributing to breaking down societal taboos surrounding financial challenges.
“Many people, even experts, recommend this approach as it encourages open conversations about money with the people around you and helps foster a supportive community that shares insights and experiences,” he explained.
It Prevents Financial Resentment Among Friends
“Loud budgeting is the recent TikTok trend of being loud about your budget and declining invitations that don’t contribute to your overall financial goals,” said Bri Conn, co-host of the Childfree Wealth Podcast. “Simply put another way, it’s open and honest communication with those around you about your financial goals.”
She emphasized that this can actually improve friendships. “There’s no shame in declining an invitation or suggesting a more budget friendly idea. My friends and I have been loud budgeting before it was a trend. For us, clear communication means we’re able to do things that allow everyone to participate without financial resentment.”
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