Worried about living paycheck to paycheck? Well, Gen Z has a savvy solution for price-conscious shoppers who are currently trying to navigate the permacrisis, rising costs of living and economic instability.

‘Loud budgeting’ is the latest social media-coined term gaining popularity on TikTok. The concept encourages people to take active control over their finances and remain vocal about making money-conscious decisions. The term was formed by Lukas Battle, a TikToker who sought to become candid about his spending.

Now, young people are racking up millions of views and likes on TikTok for simply showcasing their financial hacks, which is appealing to viewers who are struggling to stay afloat and keep up with the demands of modern lifestyles.

The pandemic created a gap in how young people understand financial literacy. And as a result, many Gen Zers have turned to creators and influencers on platforms like TikTok who share details about their budgeting journeys for others to emulate.

Whether they’re talking about cutting back on weekly grocery shops, choosing to pregame in their homes or even adopting the 50-20-20-10 method, financially conscious content has carved out its own niche on the internet.

But why is this happening and why now?

For many young people, money chit-chat is considered taboo to discuss. However, ‘loud budgeting’ is redefining social perceptions around money in digital spaces by being vocal about financial pressures and how people can better manage their finances.

This is important for the 81% of Gen Zers who say that they look to ordinary people doing good for inspiration online as financial content creators plug the knowledge gap and give Zers the financial advice they need.

“I’ve realised that you are what you consume. So I intentionally unfollowed influencers or creators who were talking a lot about shopping and started following people who are living the lifestyle that I was trying to normalise for myself,” says Jenny Park.

In an online world status symbols are on constant display, ‘loud budgeting’ offers solace for those looking to tap into a healthier relationship with their finances. However, the trend is not without its downsides as while Gen Z might be showing signs of becoming eager budgeters, they are also more likely to get into debt by relying on BNPL schemes or rewarding themselves with ‘little treats’ for self-care.

As young people’s constant preoccupation with their finances shows no signs of slowing down, trends such as ‘loud budgeting’ are indicators that Gen Z wants to gain financial independence. By breaking away from mindless consumerism and reshaping their relationship with money, ‘loud budgeting’ is painting a more holistic picture of money mindsets for Zers.