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- Gen Zers popularized 'loud budgeting,' a trend promoting transparency in spending habits.
- The trend is a reaction to high living costs and a shift from the 'quiet luxury' approach.
- Strategies include setting clear savings goals and investing in financial literacy.
Gen Zers think people should talk more about saving money.
The "loud budgeting" trend taking over social media encourages people to be more vocal about saving and spending habits. For example, a loud budgeter might tell friends they can afford a drink but not dinner at a restaurant because they are saving money. The concept — first coined by a TikTok user named Lukas Battle in December 2023 — is the latest way many Gen Zers hope to achieve their financial goals.
"It's not 'I don't have enough,' it's 'I don't want to spend,'" Battle said in a December TikTok.
Loud budgeting is the opposite of "quiet luxury," Battle said, the financial trend that previously favored high-end clothing and understated displays of wealth. Last year, many people wanted to look rich, embracing an "old money" aesthetic.
The loud budgeting trend comes as Gen Zers enter the workforce when the cost of living has become more expensive. The US consumer price index, a metric used to assess the cost of living, has risen by about 8% in the last decade. According to the Bureau of Labor Statistics, US inflation rates are double what they were 10 years ago.
Now, saving is cool again. And there are three key ways young people are learning to make the most of their paychecks.
1. Being vocal about finances
Searches for loud budgeting are up 1,637% internationally and 765% in the US over the last month, according to a recent study by financial firm Clarify Capital. The study looked at Google trends on February 12 and surveyed 1,020 Gen Zers about their financial beliefs.
One in three Gen Zers claim to be loud budgeters, the study found, saving an average of $629 a month by being transparent about their finances with friends and family.
"I woke up and saw that I had a bar tab that I did not know was that big, and then I decided that this was the year of budgeting," Battle told Business Insider last month. "I just feel like there's not a lot of language for people to use when they don't want to spend money."
Loud budgeting is about everyday people, Battle said, and saving money can be "stylish."
Gen Zers value regularly reviewing their finances, setting savings goals, investing, and making sustainable lifestyle choices, the study found. About half of young people said that being more vocal about their finances has reduced their financial stress, improved mental health, and made them feel more financially empowered.
"(The trend) suggests a shift in how young people manage their finances, potentially setting new standards for personal finance with a balance of mindfulness and conscientious consumption," the study said.
2. Setting mindful savings goals
Gen Zers are setting clear and achievable financial goals for themselves.
The survey found that over 40% of young people proactively budget for the short- and long-term, and try to make meaningful purchases instead of buying impulsively from advertisements or trends.
Another TikTok user, Steph from the account Steph & Den, said she's hoping to save 52% of her monthly income this year. Going out to bars and restaurants can get expensive quickly, and she usually opts for less expensive coffee hangouts, she said.
"All my friends know that I'm focused on saving money," she said in a TikTok from February. "They also know I'm down for a good time too, but overall I want to save. Just communicating that can really help."
Fifty-six percent of Gen Zers surveyed said potentially missing out on events with friends and family can be a downside of loud budgeting. Many are choosing less pricey social outings, and cutting back on mindless spending, per the survey.
3. Investing in financial literacy
As many Gen Zers are emphasizing their economic well-being, 37% of them see financial mistakes as learning opportunities, per the study. Young workers are learning how to cover expenses, prioritize savings, and make purchases in a way that works best for them.
Some are turning to a classic budget plan — the 50/30/20 rule.
The savings strategy suggests that people spend 50% of their income on "needs" like rent and groceries, 30% of their income on "wants" like vacations and social events, and 20% of their income on savings and debt repayment.
Others decide to set a unique budget that aligns with their needs and lifestyle. On payday, a Gen Z TikToker named Emma said she pays off her credit card, makes sure her bills are covered, places money in her savings and investments accounts, and budgets for her expected expenses.
In recent posts, she said she builds fun into her budget, in addition to funneling money into her retirement accounts and saving up for big purchases.
"Life is all about balance. For these things that I'm buying or the dinners that I'm going to — I'm budgeting for those," she said in a TikTok from January. "And, if they are fitting within my budget, I can afford them."
Young people are also choosing to open credit cards and financial planning accounts to grow their wealth over time, namely 401(k) accounts, high-yield savings accounts, and Roth IRAs.
Are you participating in the loud budgeting trend? Are you a Gen Zer willing to talk about your financial goals and how you're planning to achieve them? If so, contact this reporter at allisonkelly@insider.com.