How loud budgeting is saving Aussies money

Adoptees of the Gen Z social media finance trend of 2024 are saving $450 a month on average, according to one of Australia’s biggest banks.

Loud budgeting has replaced 2023’s quiet luxury as the Gen Z social media finance trend of 2024 and new figures from NAB reveal loud budgeters are saving $450 a month on average.

Maya McIntyre, 23, told news.com.au she first came across loud budgeting on TikTok.

Central to the idea is being open and honest with family and friends about trying to save money.

While in the past, people may have been reluctant to talk about ways they saved money or may have made up an excuse to avoid an expensive social event even if the real reason was financial, loud budgeting aficionado will share their savings hacks and admit that a desire to save money – or not being able to afford it – is the real reason for opting out.

Recently-qualified nurse Maya McIntyre has adopted a loud budgeting approach to her finances.

Ms McIntyre, who recently graduated from uni and has started her first full-time job as a registered nurse said a desire to save money for a first home led her to adopt the approach.

She said many of her friends, who are still studying or newly graduated, are also loud budgeting.

“Most of my friends are making some changes to the way we think about our finances and some of us are definitely more open to saying no to things if we feel like we want to save money instead,” she said.

“In my group, it’s not very taboo to talk about money,” she said, adding that her friends keep each other accountable by reinforcing their savings goals.

This in is stark contrast to older generations where talking about money is one of the biggest taboos.

Among the loud budgeting measures Ms McIntyre has adopted, she has cut back on streaming subscriptions, is eating out less and her friends have scrapped their monthly restaurant dinner catch-up, replacing it with a movie night at home.

She said that by loud budgeting, she’s been able to contribute an extra $250 into a high-interest savings account each month.

Consumer sentiment data from NAB Economics found that its customers under 30 are saving on average $450 a month by reducing spending on non-essentials

The figures show that the bank's Gen Z customers are saving an average of $124 a month by cutting back on restaurant meals, an average of $73 a month by scrapping “micro treats” like takeaway coffees, snacks and lunches out, and an average of $96 a month by limiting food delivery.

Also on the chopping block are streaming services, saving NAB’s under 30 customers an average of $30 a month, car journeys leading to petrol saving of $70 a month on average and

entertainment where they’re saving, on average, $64 a month.

NAB personal banking executive Paul Riley said: “In 2024, being ‘cash conscious’ is officially cool with terms like ‘loud budgeting’ emerging overseas and on social media.”

NAB's Paul Riley said it's a trend they've noticed among their customers.

“The other hot budgeting trend is ‘no or low spending months’ which involve giving up alcohol, takeaway food or shopping for clothes or beauty for the month, not booking holidays, food prepping or bringing your lunch to work or finally asking mates to repay cash you’re owed,” he said.

NAB found that 56 per cent of the Gen Z’s are putting the money they’re saving into a high interest savings account or an offset account.

“The younger you are, the more likely you are to stash that money into a high interest savings account or an offset account so instead of spending it, you’re saving it,” Mr Riley said.

He said the bank had seen a 24 per cent increase in the number of Gen Z customers opening high interest savings accounts while the overall savings account balances belonging to this age group have increased by 5.3 per cent.