Is 'loud budgeting' an inclusive conversation or an exclusive trend?

"Out: quiet luxury. In: loud budgeting. Sorry, can't go out to dinner. I've got $7 a day to live on."

That's how popular TikToker Lukas Battle ignited the social network's latest money trend back in January — following the "quiet luxury" fad of 2023, which is all about dressing and living with an understated, old-money elegance. Gives you a bit of whiplash, doesn't it? 

Loud budgeting's recent popularity feels obvious though. Since not many of us have salaries that allow us to invest in luxury fabrics and custom tailoring, or to use Friday's paycheque on a single fancy bath towel, being more open about that can eliminate the pressure to follow the herd and spend anyway.

Yet, in another way, the rise of loud budgeting feels kinda, sorta revolutionary. So many still keep their finances close to the vest and were taught to never discuss money growing up. With loud budgeting, everything from how much you make in a year to how much is in your chequing account is on the table. 

The idea is that transparency — sharing your budget and spending with family, friends or the world in the case of social media — leads to accountability and, hopefully, better habits.

"It's about behavioural change, which is a difficult challenge for most of us," said Chris Robinson, professor emeritus of finance at York University. And the transparency and acceptance required with loud budgeting also gives us an easier way to say no to things, he noted.

That's an upside also seen by Natalie Fischer, a Seattle-based finance content creator and a proponent of financial transparency even before, as she says, there was "a cool name for it." 

"If a friend invites you out to eat, but you've already spent all your budget for dining out, you should be honest and tell them you're saving money," she said, adding that suggesting a potluck dinner could be a good option. "This way, you stick to your budget and still enjoy time with your friends without the financial strain." 

The approach is perhaps most appealing to Gen Z. A 2022 Ernst & Young survey of 5,000 Gen Zs from around the world found that 77 per cent strongly believe it's important to save for the future, which is "producing a generation of savers who are advancing their financial literacy." And given that the generation has built temples on TikTok devoted to opening up about everything from their mental health to their shopping hauls, it's no surprise they're talking candidly about money there, too. 

Yet for those facing systemic wealth barriers and inequities, and for whom having to skip a pricey dinner out or the capsule wardrobe trend is tied to exasperating issues, sharing how much is sitting in one's bank account isn't a trendy "flex" — it's more likely to elicit shame or anxiety.

Take people of colour, who, according to the Canadian Centre for Policy Alternatives, are more likely to be active in the workforce — either working or trying to find work — yet also more likely to be unemployed. Or who, a 2022 RBC report found, did not see the same "record surge in household wealth" that white Canadians did during the pandemic, in part because they were less likely to own homes, businesses and other wealth-generating vehicles. It's not hard to see how trends like loud budgeting, for many, might seem cute at best or like offensive gimmicks at worst. 

And though Robinson acknowledges that sharing à la loud budgeting may help people justify their choices to friends, he asks, "but is that necessary?" He argues that looking for approval from people in our lives as to how we spend our money has to do with social acceptance. "Loud budgeting is an appeal to authority."

Still, there's another reason loud budgeting has reached a critical mass. That Ernst & Young report also noted that although Gen Z only accounts for 16 per cent of the world's population, they "out-punch their weight in influence ... [and are] not afraid to question past norms and reject conformity."

If any element of this trend sticks around then, one hopes it's the instinct to have more conversations about money, including deeper conversations about financial disparities and inequities without shame or shaming.

"[We are seeing] more people talking about salary transparency, leading to positive changes like laws requiring companies to include salary ranges for job positions," says Fischer, who believes one of the core goals of loud budgeting is a noble one: to build community. 

"As we shift from a society that sees money as taboo to more people realizing the value of discussing personal finance openly, loud budgeting could lead to a more informed and supportive society where financial wellness is a collective goal rather than an individual burden."