SAN FRANCISCO, California – In a shift from the past, social media platforms like TikTok are seeing a new trend where users are openly embracing frugality and financial honesty. This trend, known as “loud budgeting,” is gaining traction, especially among Gen Z individuals who are eager to live within their means and be more candid about their financial situations.
According to Erica Sandberg, a personal finance expert with CardRates.com in San Francisco, loud budgeting is a no-shame approach to personal finance, where individuals openly discuss their efforts to live at or below their income limit. This trend represents a departure from the previous culture of flaunting material possessions and a false sense of prosperity.
Sandberg also noted that many individuals, particularly those from the younger generation, are rejecting overconsumption and consumer debt in favor of making more mindful purchases and living a simpler lifestyle. They believe that by doing so, they can make ends meet and save for the future without succumbing to financial pressures.
The trend has gained popularity on platforms like TikTok, where individuals openly share their financial goals and the sacrifices they make to achieve them. Jaime Eckels, a partner and certified financial planner with Plante Moran Financial Advisors in Michigan, mentioned that the high cost of living, inflation, and the burden of student loan debt have forced many Gen Z individuals to reassess their spending habits and make more conscious financial decisions.
In this digital age, social media has played a significant role in shaping the attitudes of young individuals toward personal finance. The public declaration of cutting back on expenses has found support and resonance among like-minded individuals, creating a sense of empowerment and community around the loud budgeting trend.