Using the trend of "loud budgeting" to help employees

“Loud Budgeting” has spread like wildfire across the internet. In honor of Financial Literacy Month, let’s delve into the details and the impact it could have on employees across the nation.

As this trend takes off online, a recent study reported that there is a strong correlation between financial literacy and overall well-being. As employers, a distinct opportunity is available to play a big role in supporting employees’ health and well-being. However, according to the Harvard Business Review, only 28% of employers offer financial wellness programs.

Let’s explore how loud budgeting could help employees get ahold of their finances, improve financial literacy and support overall quality of life.

What is loud budgeting?

Loud budgeting, a trend beginning on TikTok, is a transparent method to share personal financial goals with others. Some say it is the “opposite of quiet luxury.” The idea is to create openness around financial decisions and empower individuals to prioritize and share their budgeting methods, tools and goals. It considers restricting spending habits out of want, not out of need.

How can loud budgeting help employees?

This trend-turned-financial-philosophy has gripped younger generations during a pivotal time: Entering the workforce. For many, beginning careers and managing new income levels can be overwhelming. Employers can help guide their employees down a wise path of financial management by providing access to financial resources.

Promotes Financial Literacy

The mere nature of loud budgeting encompasses a wide variety of financial terms and concepts. Individuals who discover this trend begin to learn new ways to think about money. The concept of debt management to high-yield savings accounts are just a few of the topics discussed. Some other themes promoted by loud budgeting are:

• Investment strategies
• Budgeting
• Emergency funds
• Retirement prioritization
• Setting financial goals
• Saving with a Health Savings Account (HSA)
• Prioritizing future financial well-being

Learning these terms and skills in a structured environment complete with some accountability could further impact the lives of employees.

Explores budget management ideas

The next big area associated with loud budgeting is budget management solutions. Once goals and priorities are set, the “how” is then navigated.

Some of the most prominent content surrounds cash stuffing, savings trackers, excel budgeting templates and more. From prioritizing debt and savings to learning how to use sinking funds, budget management can be an important tool in financial literacy. Finding ways to deliver this information to new employees could help clarify some beneficial and productive ways to manage their new income promoting healthy financial habits.

Promotes purchase prioritization

Lastly, loud budgeting places emphasis on prioritizing purchases. Whether it is the age-old advice of saving at the grocery store, meal prepping and avoiding restaurants or simply skipping out on the lawn service you rely on, managing purchases to reach a longer-term goal can promote a healthy financial picture.

What can organizations do?

One way to facilitate a strong leadership environment is to buy into your employees’ well-being and their best interests. Consider revisiting your company’s current financial literacy resources with this as your goal. Start small by having resources available on your company website then work up to a more structured program. Small baby steps can be impactful and aid in your effort to support your employees in their financial journey.

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