Making and sticking to a budget — and telling people about it — is officially cool now. And it’s all thanks to Gen Z, which is propelling the phrase “loud budgeting” to new heights on social media.
The idea is relatively simple: It boils down to being open with your financial goals and struggles and sharing them with those around you, particularly when it comes to declining pricey social outings such as dinner at a fancy restaurant, brunch every weekend or that expensive girls’ trip to a ritzy oceanside resort.
Loud budgeting essentially rips the rug out from under the traditional hush-hush nature of talking about your spending and budgeting habits and puts it all out into the open — no judgement attached. It also highlights Gen Z’s thirst for financial knowledge, and the lack of financial education that fuels it.
Equally as important, loud budgeting provides a much-needed counterbalance to “doom spending,” another viral trend, in which young people cope with economic stress by making frivolous purchases of costly luxury items like high-end designer handbags or expensive vacation packages.
It’s not difficult to spot potential signs of doom spending in current economic data. Consumer spending has remained remarkably steady even amid the economic headwinds of the past year, and Americans’ credit card debt now tops a record $1 trillion. In addition, Primerica’s most recent quarterly survey also found that 80% of middle-income Americans remain as concerned or more concerned about their credit card debt today compared to a year ago.
But that survey also found that many respondents — particularly young adults — are making regaining control of their financial well-being a top priority this year, with goals to pay off consumer and credit card debt, manage debt load, create an emergency fund, follow a budget and invest more in the future.
Such data highlights that younger generations, particularly Gen Z, may be more financially conscious and cautious as a result of their firsthand experiences of precarious economies during their initial years in the workforce. And it could be why loud budgeting is having its current heyday.
As Gen Zers continue their journey to financial security, seeking out expert advice is likely to become increasingly important. And while social media can provide valuable information, it can never match the in-depth knowledge of a financial professional.
“As a Gen Zer myself, I love that we’re being more open with our personal financial situations because I know firsthand just how important it is to start building your financial game plan even when you’re only in your 20s,” said Primerica representative Ryan Esajas. “I’ve been working with younger clients like myself who share the same view and understand that getting their financial house in order earlier will allow them to live fuller, less stressful lives.”
Setting yourself up for financial success is never simple — no matter your age. It’s easy to feel overwhelmed and not know where to start. But there are plenty of experts out there willing to help. In fact, reaching out to a financial professional may be the best possible way for Gen Zers to secure their financial future now — and for decades to come.
Leave a comment