As 2024 kicked off, a new financial trend called "loud budgeting" emerged among young adults, gaining momentum through viral TikTok videos. Coined by user Lukas Battle, loud budgeting is a movement where individuals proudly vocalize their commitment to frugality and financial responsibility.

In a recent report, Paul Riley, a personal banking executive with NAB Bank in Australia, defined loud budgeting as "unapologetically prioritizing your own financial goals, setting smart boundaries on spending, and feeling comfortable to talk about it openly and authentically."

TikTok has become the epicenter of this movement, with users sharing their loud budgeting journeys. The trend focuses on celebrating frugality and openly discussing financial decisions, aiming to break the stigma associated with budgeting and saving.

Natalie Fischer, the mind behind the TikTok account @investwithnat, embraced loud budgeting after experiencing an uptick in spending due to her wedding. Having transitioned to full-time content creation to promote financial literacy, Fischer downsized her lifestyle to align with her new reality. She believes that loud budgeting will expedite her journey towards achieving investment and savings goals.

Addressing the issue of lifestyle creep, TikTok user Mia Westrap (@miawestrap) emphasized the importance of making realistic financial plans and cutting back on unnecessary expenses. Many loud budgeters are combatting lifestyle creep by creating financial boundaries, saying "no" to social activities that come with a price tag, and opting for more cost-effective alternatives.

The impact of loud budgeting is evident in a recent survey by NAB Bank, where Australians under 30 are reported to save an average of AUD 450 (approximately $300) every month by adopting TikTok financial trends. The largest sources of savings are related to food, including dining out, food delivery services, and small indulgences like coffee and snacks.

Loud budgeting is not just about individual financial gain; it has become a catalyst for open conversations about money within friend groups. TikTok user @itslisasun expressed her desire for her friends to embrace low-cost activities, fostering a supportive community focused on frugality.

As the loud budgeting movement gains momentum, it's evident that for these Gen Zers and millennials, being financially savvy is not just a personal choice but a lifestyle they proudly share with the world. Through TikTok, they are reshaping the narrative around money, making frugality cool and encouraging others to join the movement towards financial empowerment.