'Loud Budgeting' Is Going Viral On TikTok — And For Good Reason

TikTok has quickly become many people’s go-to source for recipe ideas, style inspiration, organizing tips and even personal finance advice.

And lately, a new approach to money management has been making waves on the platform: “loud budgeting.” Since the start of the new year, TikTok has been flooded with videos touting the benefits of this method and the best ways to make it work.

“Loud budgeting is a financial strategy where you share your money aspirations directly and not so quietly with the people in your life,” Derek Ober, a financial advisor with Northwestern Mutual, told HuffPost. “It’s a public commitment. Loud budgeting centers around the idea of telling others why you’re choosing not to spend money on something and being transparent about the reason you are saving.”

For example, you might say no to an expensive dinner or group trip and explain that it’s because you’re prioritizing paying off credit card debt or saving for a down payment on a house. The idea is to proudly own your money consciousness.

“Until now, we usually saw people flaunting their money on social media rather than flaunting their financial struggles,” said budgeting expert Andrea Woroch. “Loud budgeting suggests you should speak up about your financial situation and make spending decisions that support your goals and match your current budget and needs. It’s making it socially acceptable to use your financial struggles as a reason to opt out of certain gatherings, trips or group gifts.”

But does this social media trend pass muster with experienced financial advisors? We asked some experts to break down loud budgeting and share their advice for implementing this approach into your everyday life.

Is loud budgeting a good idea?

“As a