“It’s not ‘I don’t have enough,’ it’s ‘I don’t want to spend.’ It’s about the everyday person,” said internet personality Lukas Battle.
In a digital age dominated by the temptation of luxury portrayed on social media platforms, a concerning trend among youth has emerged: Money Dysmorphia this phenomenon is defined as a distorted view of one’s finances leading to incorrect financial decisions, and this is particularly affecting Millennials and Gen Z, with 59% and 48%, respectively, admitting to struggling with their money goals, as reported by Money Control.
Money Dysmorphia has its widespread effect on social media platforms like TikTok and Instagram, which shape the younger generation’s financial goals. The depiction of lavish vacations, designer bags, and dream kitchens has convinced many young people that these luxuries are entitlements rather than earned privileges. The pressure to conform to this distorted reality has resulted in a growing problem of Money Dysmorphia among young people, forcing them to portray an image of money that is often beyond their means.
To tackle this issue, Gen Z is adopting a unique strategy in 2024: ‘loud budgeting.’ Loud budgeting is a financial strategy in which you present your financial goals in front of friends and family. It includes clarifying why you may decide not to spend money, even if you have it. This level of accountability can help you stick to your budget without feeling guilty.
It is led by TikTok influencer Lukas Battle, which is in complete contrast to the quiet luxury that is promoted by social media. Battle has gained attention for his viral TikTok video with over 1.4 million views, in which he announces, “Let’s send a message to corporations about the national inflation level. Let’s take a stand. “Loud budgeting” is a rebellion against overspending. It is not a lack of resources, but a conscious decision to resist the pressure of society to live extravagantly. Battle compares the trend to “sneaking candy into a movie theater,” implying that practicing budgeting feels like a hidden victory over social conventions.
This movement is gaining popularity on platforms such as TikTok, indicating an increasing cultural shift among the youth. It represents a desire to break free from the constraints of Money Dysmorphia and redefine fulfillment beyond materialistic standards. The trend has evolved into a platform for Generation Z to showcase financial responsibility, resisting the constant pressure to display an extravagant lifestyle.
The impact of ‘loud budgeting’ extends beyond social media, with Generation Z challenging traditional success parameters. Instead of projecting wealth through lavish vacations or Louis Vuitton bags, they are embracing financial restraint as a sign of success. This trend may provide a counterbalance to social media’s unrealistic standards, encouraging a more authentic and mindful approach to personal finance.
As ‘loud budgeting’ gains popularity, the question remains whether this movement will inspire a broader societal revision of financial values, or if it is simply a brief break from constant social media pressures. However, it demonstrates Gen Z’s resiliency in challenging the norms and pursuing financial success on their terms.