Study Reveals: Top 3 Benefits of Loud Budgeting for Gen Z Savers

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

“Loud budgeting” is a big TikTok trend with powerful effects on Gen Z’s personal finances. See how loud budgeters are saving over $600 per month. [[{“value”:”

“Loud budgeting” has arisen from unlikely origins on TikTok to be one of the hottest topics in personal finance. People are excited about loud budgeting because it’s a new way for Gen Z to talk about money — honestly, clearly, and “loudly.”

Gen Zers often feel overburdened by debt, underpaid in their paychecks, and overstretched at the grocery store. Loud budgeting is a way to openly discuss money, declare independence from “FOMO” and doom-spending, and regain control of your personal finances. According to a new survey from Clarify Capital, Gen Zers who use loud budgeting habits are saving an average of $629 per month.

Let’s look at the biggest benefits of loud budgeting, according to the Clarify Capital survey.

1. Reduced financial stress

Among the Clarify Capital survey respondents who are using loud budgeting, 57% said that these techniques and budget habits had reduced their financial stress. If money is keeping you up at night, it might be time to speak up about it — and start budgeting loudly.

Here are a few reasons why loud budgeting habits might lead to lower financial stress:

You’re aware of your monthly income and spending

Loud budgeters tend to devote time and attention to reviewing their finances. They don’t stick their head in the sand and avoid checking their bank balance — they face the situation head-on. Sometimes when you’re too stressed to look at the true picture of your personal finances, they become even more stressful. The problems become more manageable when you can size them up in the clear light of day.

You make intentional choices

Loud budgeting is about intention. Instead of helplessly “doom spending” because you feel like you’ll never have enough money and there’s no point in trying to save, loud budgeting lets you take control and make your money work for you. “No thanks, I’m not buying that,” you can say. “Sorry, I can’t go out for drinks tonight because I’m saving money.”

You set goals for your personal finances

Loud budgeters are good at prioritizing their most powerful financial goals. What’s more important to you: an expensive outfit or $500 in your bank account? Would you rather spend $2,000 on a vacation or boost your emergency savings fund? What if you could cook every meal at home for a month and save $600 on restaurants?

All of these loud budgeting habits can reduce your financial stress by helping you regain control of your money — and your life.

2. Financial empowerment

The second biggest financial benefit of loud budgeting, according to the Clarify Capital survey, was financial empowerment (52% of respondents). Loud budgeting is not just about numbers in the bank, it’s about how you feel about your personal finances and your self-image.

Gen Z is having a hard time. They feel financially stressed, and are bombarded with annoying social media images of young people their age who seemingly have unlimited money to spend on nightclubs, fancy restaurants, and international vacations. “What’s wrong with me, if I can’t afford those things,” they often think to themselves. “Am I a failure?”

Loud budgeting can help Gen Z declare their self-worth, in a way that has nothing to do with spending money. It’s a way to fight back against these unhelpful feelings of inferiority and “FOMO.” Just because someone on Instagram is having a happy-looking vacation in the Caribbean doesn’t mean their life is “better” — they might not even be able to afford those things; they might be living on credit card debt.

You never know the reality of someone’s financial situation unless you can see their credit score, bank accounts, and brokerage accounts. Loud budgeting lets you take care of your life, without comparing yourself to others.

3. Improved mental health

The Clarify Capital survey of Gen Z also found that “improved mental health” (44% of respondents) was the third most popular benefit of loud budgeting. Financial wellness can also mean better personal wellness. If you’re not stressing about money, if you’re not losing sleep about credit card debt, you’ll often have more energy and emotional bandwidth to take care of your body and mind.

Another aspect of budgeting that doesn’t always get measured by the numbers is how good it can make you feel. There are many ways to take better care of yourself that don’t require a lot of money, such as:

Cooking healthy meals at home from fresh ingredients instead of getting takeout every nightGoing for walks or bike rides at the park instead of joining an expensive gymHaving a “staycation” where you discover new sights in your own local community instead of going to a high-priced resort

Loud budgeting can be a new opportunity to not just realign your personal finances, but to rediscover simpler, healthier, more creative ways of life.

Bottom line

If you want to take control of your personal finances and save big money in 2024, consider jumping on the loud budgeting bandwagon. This is one TikTok trend that is actually offering good advice for your money and your life. Your bank account — and your mental health — might end up better off.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More