Loud Budgeting: How A TikTok Trend Aims To End Shame Around Money Talks

A Note From Patricia:

Hello and welcome to Forbes Advisor’s Weekly Brief, where each week we dive into the realities of consumer finance and empower you with the knowledge to help make your financial journey easier.?

We’re told time and time again that social media is superficial. But when you’re constantly scrolling through accounts showing people making lavish purchases with exorbitant (or unplanned) budgets, it can be easy to get caught up in this fake reality.

In real life, most of us have spending restraints—and not sticking to a budget can have disastrous consequences, like falling into debt.?

Enter loud budgeting, a recent TikTok trend challenging the status quo that spending within your means is cringe. Loud budgeting is exactly what it sounds like—prioritizing your budget and being upfront about it to your peers. It leaves shame or judgment surrounding personal finances at the door, and invites honest conversations about where people stand with their money.?

From our partner: Budgets aren’t just for everyday life—businesses need them, too. If you’re an entrepreneur looking to improve your business’s budget and cash flow, consider using Relay’s business banking and money management platform to help you manage your finances.

This week, we’ll discuss loud budgeting and how it can help you reach your financial goals.

Sincerely,

Patricia Louis

Editor, Forbes Advisor

Loud Budgeting: How A TikTok Trend Aims To End Shame Around Money Talks

It’s easy to make a budget, but sticking to one is a different story—especially when you’re trying to keep up with the Joneses.??

The average credit card debt for Americans is currently about $6,201 according to TransUnion. And many Americans harbor shame about their debt—a survey commissioned by Trustpilot found that 7 out of 10 Americans lie about their finances up to four times a month, and some avoid the truth due to feeling guilty or embarrassed about their finances.

“Loud budgeting,” coined by TikTok creator and comedian Lukas Battle, involves being upfront about where you stand with your finances so you can set financial boundaries with yourself and others. It’s not about penny-pinching; it’s about spending less without shame and not lying about why you can’t join for happy hour every day after work.?

Loud budgeting’s radical appeal may lie in the fact that Americans hate talking about money. Studies find they’re more comfortable discussing marriage problems, mental illness, drug addiction, race, sex, politics and religion than they are about money. Loud budgeting turns Americans’ insecurities about their finances on their heads, and embraces where people are in their financial journey.

It also gets back to basics. You don’t need to spend $30 on a salad at a fancy restaurant or hundreds on concert tickets to create meaningful relationships with the people you care about.

A few examples of applying loud budgeting to your daily life include:

• Looking for alternatives: Just because you’re on a budget doesn’t mean you can't have fun. Suggest cheaper alternatives to plans that you’re invited to. Going out for dinner can easily be swapped for a picnic in the park with homemade sandwiches or hosting a movie night with popcorn and a classic film. Getting creative with the ways you spend time with friends and family can save you money and result in meaningful interactions.

• Stop scrolling: It’s becoming harder to discern what’s real and what’s fake in the online realm. Some of your favorite influencers are most likely being gifted the lavish items you see in their videos from PR boxes or are going into serious debt to look good on social feeds. It might be tempting to keep up with the latest trends, but taking a breather from social media can help you avoid unnecessary purchases.?

Loud budgeting is one step towards setting boundaries and building a solid financial future. For more ideas on making a budget and sticking to it, check out our related stories below.?

Related Stories:?

• 4 Ways To Start Loud Budgeting With Credit Cards
• Best Budgeting Apps Of May 2024
• Personal Budgeting: Why Strong Cash Flow Management Isn’t Just For Small Businesses???

Here’s what else is going on in the news this week:

• Student Loan Interest Rates To Soar Above 6.5%—The Highest Level In More Than 15 Years According to a U.S. Department of Education announcement, the fixed interest rate on federal student loans for undergraduates during the 2024–2025 academic year will be 6.53%—the highest rate since the 2007–2008 school year.
• Car Insurance Prices Still In Overdrive, Showing Annual Increase Of 22.6% Car insurance premiums continued to climb in April, rising 22.6% over the past year, according to the latest Consumer Price Index from the U.S. Bureau of Labor Statistics.?