Experts Call ‘Loud Budgeting’ TikTok Trend ‘Empowering’
By Movieguide® Contributor
A financial trend called “loud budgeting” is taking over TikTok. What is it, and what should you know before adopting the practice?
“Loud budgeting [is] the concept of sharing your financial boundaries with friends and discussing them openly as you’re deciding where to spend your money,” TODAY reported.
The term was coined by comedian and writer Lukas Battle on TikTok. Although it started as a joke, Battle — and others — now see it as a real financial plan.
“Having financial autonomy and being confident and kind of being transparent about your money situation can be just as cool as flexing it and trying to buy all these expensive items,” Battle told CNN.
Joyce Marter, LCPC, financial therapist and author of “The Financial Mindset Fix: A Mental Fitness Program for an Abundant Life,” explained that loud budgeting “separates worth from the ability to afford material possessions or costly experiences.”
Marter added that by communicating your financial boundaries with the people in your life, you can avoid the stress and other mental health issues that can come from dealing with tricky financial issues.
She shared the steps for loud budgeting: open-mindedness, self-awareness, empathy and holding yourself accountable.
“The intention is for loud budgeting to be rooted in self-worth, self-love, an abundant mindset and conscious collaboration,” Marter concluded.
Personal finance expert at CardRates.com Erica Sandberg echoed this statement of empowerment, telling CNBC, “Being loud can be empowering. With this process, you become proud that you bring a bag lunch, make your own coffee, or take the bus.”
TikTok has become a place where many young people are going to for financial advice. Movieguide® previously reported on #StockTok:
A new community is emerging on TikTok. What is #StockTok, and what should parents know?
“StockTok” is an online community for Gen Zers who are interested in trading stocks — something that became popular after the now-infamous GameStop stock price inflation.
“In a May survey from the CFA Institute, a global trade association for investment advisors, more than half of Gen Z respondents said they were already investing, and 82% of American Gen Z investors said they began investing before they turned 21,” BusinessInsider wrote. “That’s significantly higher than the 31% of millennials and 14% of Gen Xers who said in a 2018 survey they began investing at that age.”
While some parents might be pleased that their kids are taking an interest in the stock market, experts have some warnings.
A report from WallStreetZen found “a worrying pattern: much of the stock advice on the platform is not only misleading but also potentially hazardous for inexperienced investors.”
They found that nearly two out of three StockTok videos are “misleading,” while 95% do not have any kind of disclaimer posted.
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