Talking about money gets louder amid growing budgeting trend

Young adults are rebelling against their parents’ reluctance to discuss finances, and are openly sharing money wins and losses.

The term “loud budgeting” might conjure a wacky image in your mind: someone speaking at you through a megaphone dishing out advice about how to save money.

That’s actually not far from the truth, only with loud budgeting the megaphone is replaced by social media and chats among friends, and a growing number of young adults are embracing it.

Loud budgeting started on TikTok but has spread more widely and is helping to break society’s longstanding taboo around talking openly about money.

The rise of financial influencers over the past decade suffered a hit in 2022 when the Australian Securities and Investments Commission cracked down on their advice, but those who remain after getting themselves licenced continue to share their financial successes and tips.

Finance influencer Natasha Etschmann recently told her tens of thousands of followers that “money is still a taboo topic that we don’t discuss enough”, while fellow influencer Queenie Tan has recently shared the best money lessons she’s learned and how she plans to make her newborn a millionaire.

LOUD AND PROUD

Kogan Essentials director Ron Gelberg says more people are “speaking loudly and proudly” about their positive money moves.

“This is exactly what the loud budgeting trend is all about – being open and sharing with friends, family, or even co-workers on how much they are saving by prioritising making smarter financial decisions,” he says.

“Younger folks tend to prefer loud budgeting because it resonates with their values of honesty and transparency.

“Unlike older generations who often keep their money matters hush-hush, younger people are all about discussing their financial ups and downs openly with their peers.”

Sophie Liao, 24, talks about money with her friends. Picture: Supplied

HALF THE PRICE

Among them is Sophie Liao, 24, who says she and her friends are open about money conversations and finding ways to save.

“We used to spend heaps on overpriced dinners and going out, but we realised we could have the same experience at home for half the price,” she says.

“Compared to last year, we’ve been more selective with the events we choose to go to this year to accommodate our budgets.

“My friends and I have always been pretty upfront about how much we earn and how much things like rent cost.

“I’m thankful to have friends I can openly discuss budgeting with. We’re all struggling with the rising cost of living, and having people you can share budgeting tips and tricks with has made a difference in my savings.”

PRIORITISING GOALS

NAB personal banking executive Paul Riley says there was steady growth in the number of younger customers opening savings accounts last year.

“Despite cost-of-living pressures, savings account balances in this age group have risen too,” he says.

“Loud budgeting is all about unapologetically prioritising your own financial goals, setting smart boundaries on spending, and feeling comfortable to talk about it openly and authentically.”

Young adults are much more vocal about sharing their money experiences. Picture: iStock

Behavioural economist, psychologist and founder of Switch4Schools Phil Slade says money talk has become more open, but he wonders whether loud budgeting via social media could lead to financial wellbeing issues as it has with body image problems.

“What I haven’t seen with loud budgeting is people saying ‘I’m in turmoil because I did something bad’,” he says.

“I’m not against the loud budgeting concept, I like it, but I feel when it’s on social media it has all of the problems that social media has.”

SELF-WORTH

People are more willing to discuss money wins and losses when they are younger and individual rather than married and older, Slade says.

“We don’t necessarily see that loud talk happening between couples, but I do think the taboo is shifting,” he says.

“It feeds into meaning and value and ‘what have I done with my life?’. When people detach financial success from life success they can talk about it. If they see their financial struggles as life failures they are less likely to talk about it as it will crack part of their identity and sense of self worth.”

Originally published as Talking about money gets louder amid growing budgeting trend