In an example from TikToker Lukas Battle, who is widely credited with coining the term, someone loudly budgeting wouldn’t just decline a dinner invitation, but rather say, “Sorry, can’t go out to dinner, I’ve got $7 a day to live on.”
“It was meant to be a funny idea that allows people to be financially transparent without feeling embarrassed,” Battle told Buzzfeed. “I think being honest and realistic about money should be considered stylish and cool.”
You won’t hear any arguments from financial advisors when it comes to the money part — they always think avoiding overspending and sticking to your financial plan is a good idea.
But what about the social aspect?
TikTokers may be on to something there as well, experts say. For one thing, it shows a certain emotional literacy as it pertains to money — something a lot of people tend to lack, says Brian Portnoy, a behavioral finance expert and founder of Shaping Wealth.
“I think it’s healthy,” he says.
And as long as you do it right, loud budgeting shouldn’t ruffle feathers in your social circles either, says Diane Gottsman, an etiquette expert and founder of the Protocol School of Texas.
“Loud budgeting is just another way of saying open communication,” she says.
Good money management requires two types of literacy, Portnoy says. One is financial literacy — the nuts and bolts of managing, investing and saving your dollars and cents. Equally important, though, is emotional literacy, especially since money tends to be an emotional “lightning rod,” Portnoy says.
“The words you use to describe what you feel as it relates to your savings and spending and investing and borrowing and all other forms of financial activity — that’s a different skillset altogether, and one that we are even more lacking in,” Portnoy says.
Loud budgeters who are willing to communicate their intentions around their money are taking a step in the right direction.
“Maybe there’s the beginning of a generational shift where it’s legitimate to talk…
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