Are you wondering what “loud budgeting” is and why it’s suddenly so popular?

This article in Canadian Business, for which I was interviewed, describes loud budgeting as “being honest and open about what you can and can’t afford instead of glamourizing the aspirational shopping hauls, exotic travel and Michelin-star dinners that social media is notorious for.”

It’s easy to dismiss loud budgeting as just another financial trend, like cash stuffing or soft saving. But it feels like a sign of the times, a reaction to our current economic climate of unaffordable housing, lingering high prices, elevated interest rates and record credit card balances. 

Loud budgeting empowers your kids (and you) to be more transparent and simply say: “I don’t have the money for that” or “it’s not a priority”. It can apply to pricey restaurant meals or larger expenses, such as a bachelor/bachelorette trip or destination wedding.

Being truthful and upfront with friends and family about your financial situation, and not feeling ashamed, can provide the support and accountability you need to stick to your budget and reach your goals.

Before you can loud budget, you need to create financial goals, based on your personal values, and an actual budget that will help you achieve them. Resources like the Values Validator, Teen Budget Template and Goal Setting Worksheet in The Wisest Investment can help.

February can feel like a “blah” month, as winter drags on and spring feels like it will never arrive. Fortunately, Valentine’s Day and Family Day (in Canada) come along just when we need a little extra love and care.