"I'm Short on Money This Month, Let's Meet Next Time"... How Generation Z Declines Invitations Today [World in Z Gold]

Openly Stating Financial Status: "Loud Budgeting"

A Practice of Sharing Spending Limits and Restricting Expenses

Editor's NoteGeneration Z (those born in the late 1990s to early 2010s) is emerging as a generation that leads cultural shifts and trends amid rapid change, setting new standards across society. In the [World is Z-Gold] series, we examine the lives and values of Generation Z around the world, and explore how they are reshaping society.

"I’m short on living expenses this month, so let’s meet next month."

Recently, among young people, a practice known as 'loud budgeting'—openly sharing one’s financial situation and cutting back on spending—is spreading. For example, when invited to expensive meals or trips, people frankly say, "I can’t make it because I don’t have enough money." Whereas people used to be hesitant about revealing their financial status, now, openly sharing such information has become a trend.

"I need to save money"...Being unapologetic about saying no to spending

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Recently, The Guardian, a British daily, spotlighted 'loud budgeting' as a trend among young people. The newspaper described it as a "relatively new trend," explaining, "Instead of quietly struggling with unaffordable expenses like everyone else, people are openly letting others know they can’t afford something." In the past, people would feel pressured to join gatherings with friends even with limited funds; now, frankly saying "I can't go because I don't have enough money" and turning down invitations has become more natural.

Loud budgeting does not simply mean giving up consumption due to a lack of money. Even those who are financially comfortable now decline expenditures by saying, "I just don't want to spend my money on that." The Guardian advised, "Complain about money if you need to, and make it clear that you're unable to do certain things because of financial reasons," and also recommended, "Talk about your finances honestly and transparently." It added, "People appreciate honesty and will understand. If they don't, that's their issue, not yours."

This phenomenon seems to reflect a reduced aversion to discussing personal finances openly. Emma Edwards, founder of The Broke Generation, a platform offering financial advice to Millennials, explained, "We tend to think that our financial circumstances shouldn’t make others uncomfortable, or that we shouldn’t reveal we’re on a budget," and added, "Loud budgeting is about being honest about your finances, highlighting your goals and values, and declining to spend beyond your means."

"Money Influences Gen Z Friendships"

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In reality, Generation Z is actively sharing financial information in their friendships. According to a Bank of America (BofA) survey of more than 2,000 U.S. adults this year, 42% of Gen Z respondents practice loud budgeting. In addition, 60% of Gen Z said they talk about money with their friends. The topics discussed included their spending capacity (28%), salary and income (27%), financial stress (24%), and monthly expenses (24%).

 

Furthermore, young people are proactively reducing expenses even in their social engagements with friends. In the same survey, 75% of Gen Z said they look for ways to save money when organizing social plans with friends. ▲ Suggesting free or low-cost activities (39%) ▲ Ordering cheaper menu items (38%) ▲ Eating at home or bringing their own food (31%) were common strategies. 

The report concluded, "Money is a factor that genuinely impacts Gen Z friendships, and this generation is open to discussing it," and added, "Even in tight financial situations, Gen Z works to find a balance between their finances and friendships."

'Loud Budgeting' Is Also Familiar to Small Business Owners

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The term loud budgeting was first introduced by TikTok creator Lukas Battle at the end of 2023. He described it as the opposite of 'quiet luxury', where wearing or owning luxury items is done subtly, and said, "Loud budgeting can actually be more sophisticated, more stylish, and more conspicuous than that." He emphasized, "It’s not that you don’t have enough money, but that you simply choose not to spend it."

Meanwhile, The Guardian noted that loud budgeting isn’t unique to young people. Small business owners have long negotiated prices in similar ways—openly telling suppliers or service providers that a price is too much, pushing back against fee increases, and demanding better terms. Actively revealing their budget limitations has served as a key negotiation strategy for them.

This content was produced with the assistance of AI translation services.