This past holiday season, my husband and I gifted our 3.5-year-old son a wallet. This might strike some as odd because why does a 3-year-old need a wallet, but for us, it was a no-brainer. We’ve raised him from a young age to understand that when we go to the grocery store, we have to pay for the items, and he quickly learned that if he wanted to buy a toy from the store, he needed money. So, to begin educating him on how to spend and save money, we gifted him a velcro Spiderman wallet. And, to no surprise, he loved it.
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We’ve made it common practice in our house to talk about money, but that’s not the norm. Most of us have been raised to believe that talking about money is taboo. That we shouldn’t discuss how much we make, how much debt we have, and certainly not how much we spend. It’s all been hush-hush until the latest finance trend went viral on TikTok. I’m talking about loud budgeting.
What is Loud Budgeting?
Loud budgeting first hit the scene when TikToker Lukas Battle coined loud budgeting as ‘in’ on his social media In/Out list for 2024. He defines loud budgeting as the opposite of quiet luxury, otherwise known as stealth wealth or old money aesthetic. Battle explains loud budgeting as “It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend.’” At its core, loud budgeting is being vocal about your financial goals and setting boundaries around how you spend your money. It’s being loud and proud about your financial situation and not feeling guilt or shame around saying no to things that don’t help you meet your goals.
For example, if a friend asks you to grab dinner this weekend but you don’t have money left in your budget for eating out this month, loud budgeting would look like communicating that you appreciate the invite, but you don’t have money in your budget for dinner this weekend. Whereas you previously may have made an excuse about being busy to avoid the uncomfortable conversation around money.
Why is Loud Budgeting “In”?
I asked Jennifer Dohm, Head of Consumer Communications at Chime, why people are so interested in the loud budgeting trend, and she shared that it represents a shift towards financial transparency and empowerment for people. “In today’s world, where social media often portrays an image of constant spending and a focus on luxury, it’s a breath of fresh air for many,” Dohm shared. “It encourages individuals to be open about their financial goals and limitations and fosters a community of support and shared learning. Everyday people are really looking for more authenticity and transparency in all aspects of their lives, so why should personal finance be any different?”
“Everyday people are really looking for more authenticity and transparency in all aspects of their lives, so why should personal finance be any different?”
I love the idea of being open about financial goals, especially as a parent. As we raise the next generation of consumers, it’s our responsibility to teach our children financial literacy and how to use their money responsibly. In my opinion, the best way we can do this is by leading by example. If we stay quiet about our financial decisions as a family, we bypass valuable learning opportunities for our children. Loud budgeting allows our children to be involved in family and personal financial matters where it makes sense.
Loud Budgeting Represents a Cultural Shift
“The economic landscape is changing; people are looking for new ways to be smarter about their finances without sacrificing quality of life,” Dohm explained. “Loud budgeting focuses on making conscious, sustainable financial choices. It’s about being proud of financial prudence rather than hiding it, which is a major cultural shift.” This cultural shift is one that needs to start at home with the decisions we make with our partners and how we decide to involve and educate our children. Dohm also noted that loud budgeting represents a lifestyle that prioritizes financial progress, not perfection, and happiness over the appearance of wealth, which is more sustainable and fulfilling in the long run.
“Loud budgeting represents a lifestyle that prioritizes financial progress, not perfection, and happiness over the appearance of wealth, which is more sustainable and fulfilling in the long run.“
What Impact Does Loud Budgeting Have on Children?
It’s my belief that nothing bad happens the more we talk about money; that includes having open and honest conversations with our friends, family, and children. If we begin to vocalize our financial decisions and involve our kids in our financial reasoning, the result is more financially literate children, and Dohm agrees. “I say, start ‘em young! Being honest with your kids early on opens up healthy habits of transparent conversations about money—and those habits can have real, positive long-term impacts,” she shared.
As parents and adults around children (i.e., aunts and uncles, family friends, grandparents, etc.), it can be easy to assume that kids won’t understand money-related topics. But this kind of limiting belief is what leads us to shy away from the typically taboo topic of money and raise children who are missing out on important financial conversations at home. The best thing we can do as parents is to talk about money, both the good and the not-so-good, so conversations around money and learning how to manage finances become the norm. “By being open about financial choices and involving children in interactions with money, parents can demystify money management and make it a natural part of daily life,” Dohm explains. “Ultimately, parents who practice loud budgeting model behaviors that can help their children develop into financially savvy adults.”
How Can Parents Use Loud Budgeting to Teach Their Children About Money?
Including children in loud budgeting practices will look different based on your child’s age, and as you know your children best, you’ll know how to tailor the conversations in a way that makes the most sense. For a younger child, loud budgeting can look like having a conversation around not purchasing an item at a store or doing a certain activity because their parent(s) don’t have the money this week to make the purchase. For an older child, you can get a bit more detailed and explain that you only get paid a certain amount of dollars each time you receive your paycheck, and each of those dollars has a purpose, which doesn’t align with their current ask.
If you’re on board and want to start incorporating loud budgeting with your children, Dohm shared a few tips to get you started. She believes that by integrating these practices into our daily lives, parents can use loud budgeting to manage their finances and as an educational tool to equip children with the skills and mindset needed for a lifetime of smart financial management.
Have open discussions about finances
“By talking openly about budgeting decisions, parents can make financial literacy a natural part of how children learn and think about money. Discussions can include setting family financial goals, choosing where to cut back, and deciding together on where to allocate extra funds,” Dohm shared. “Chime recently created Dollars & Sense, an innovative card game dedicated to helping people, including families, talk more openly about their financial beliefs and behaviors.”
Set financial goals together
Families can work on setting both short-term and long-term goals together, like saving for a family vacation on your bucket list or a new board or video game, to teach children the value of saving for a specific objective.
Celebrate budgeting wins
When you reach a financial goal as a family, be sure to take a moment to celebrate. “This reinforces the positive aspects of budgeting and saving, showing that financial discipline has rewarding outcomes,” Dohm said.
Share practical money management exercises
Dohm recommended giving children a small budget for certain choices, like picking out school supplies or deciding on their lunch for the week. Dohm explained, “This hands-on approach teaches them to make decisions within financial constraints.”
