7 things to know about “loud budgeting”

(NC) When we get together with family and friends, not everyone feels comfortable talking about money. But a new trend is trying to change that. “Loud budgeting” is about breaking that taboo and encouraging people to talk about their financial situations. If this makes you feel a bit uneasy, you are not alone.

Here are seven things to know about loud budgeting:

1. It’s all about transparency. This means being honest about your financial situation with yourself and with others. You can openly share your budget, spending limits, and financial goals with friends and family.

2. It can provide community support and hold you accountable. By discussing your budget openly, you can gain support from others who understand your goals and can help you stay on track. It can also help reduce the pressure of trying to keep up with other people’s spending habits. For example, people might be more understanding if you refuse an invitation to go out to eat or go shopping if they know you’re trying to save or pay your debt.

3. Find an accountability partner. Partner with someone who has similar financial goals to keep each other motivated. This is the same as finding a gym partner. Some people may find it easier to stick to a plan when they’re doing it with someone else.

4. It can be empowering. It shifts the narrative from “I can’t afford this” to “I choose not to spend on this because it’s not a priority for me.” This empowers you to make financial decisions based on your values.

5. Before getting started, set clear goals. Define what you want to achieve with your budget before you communicate these goals openly. Financial goals can include paying off debt, saving for a home or saving for a trip of a lifetime.

6. Start small. Discuss your budget with close friends or family members. This approach may be less intimidating.

7. After that, you may want to use social media. Some people share their budgeting journey on platforms like TikTok or Instagram to connect with others that practice loud budgeting. If this interests you, remember to never share any personal and banking information that could put you at risk of fraud.

Whether loud budgeting is for you or not, setting a budget is key to achieving your financial goals and managing your money responsibly. You can also take advantage of online financial tools such as the Financial Consumer Agency of Canada’s budget planner. The tool lets you create and save a budget online and shows how your spending and saving habits compare with the average Canadian. Get next steps with suggestions and useful links, earn badges and share your success story. Try it out at canada.ca/money.