Top 3 ‘big budgeting’ habits smart Gen Zers are using today

If you spend any time on TikTok or read personal finance blogs in 2024, you’ve probably heard the term ‘big budgeting’. This concept of being vocal about your financial goals has become a sensation among Generation Z, who want to save money, control their spending, and improve their financial well-being.

According to a recent study by Clarify Capital: Gen Z budgeters are saving an average of $629 per month!

Here are some of the most popular and effective budgeting habits that can help you save more money in 2024:

1. Monitor your credit and bank accounts

Clarify Capital surveyed Gen Z in February 2024 and found that ‘regularly reviewing and adjusting your finances’ is the most important factor for ‘big budgeters’ (cited by 51% of Gen Zers who use big budgeting). We found that this is the most commonly mentioned habit among: A big part of noisy budgeting is being more transparent about your personal finances to others and yourself.

Checking your bank balance regularly and understanding your credit score can be part of your budget plan. First, sign up for a free credit monitoring service that can help you detect changes to your credit report. These services can also give you insight into what it takes to build credit, help you understand how different financial decisions you may make may impact your credit, and help you improve your credit score.

2. Manage your personal finances carefully

Noisy budgeting is the opposite of “miserable spending.” Instead of mindlessly spending money, even when you don’t have enough in the bank, loud budgeting is a way to clearly express your intentions about how you want to spend and when you want to save. According to a Clarify Capital survey, the second most popular budgeting habit was “intentional choices for financial well-being and prioritizing goals” (mentioned by 47% of Gen Z budgeters).

You don’t have to feel helpless about money, and you don’t have to get carried away by other people flaunting their wealth on social media. Just because your friends share pictures of expensive vacations or fancy restaurant dinners doesn’t mean they can actually afford it. You don’t know the reality of their bank statements. Sometimes people who splurge on their spending may actually be racking up credit card debt.

Sign up for a budgeting app and get a clear picture of where your money is going. The best budgeting apps allow you to categorize your spending by automatically tracking it down to each transaction. You might be surprised how much money you’re spending each month on unwanted subscriptions or restaurant meals you could cook at home.

Understanding your monthly expenses and finding ways to save can help you be more intentional. Noisy budgeting isn’t about depriving yourself of what you want in life. It’s about focusing on exactly what you want most and making sure you have the money to achieve those financial goals.

3. Set financial priorities

When it comes to financial goals, “setting and prioritizing financial goals” ranked as the third most popular habit among Gen Z budgeters (mentioned by 46% of budgeters in a Clarify Capital survey). If you want to have more control over your money, it helps to get clear on the specific financial goals that are most important to you.

Here are some big-picture questions about your personal finances for you to consider.

• What is the “happiest” amount of money you spend each month?
• What fears you most about your personal finances?
• What characteristics of money make you most afraid, uncomfortable, or embarrassed?
• If you could start a side hustle to make $500 extra a month, what would it be?
• If you could save $100 a month, where would you cut back?
• If you could save $500 a month by cooking all your meals at home, would you do it?
• If you could save $3,000 a year by taking a “staycation” instead of traveling, would you do it?

This is a provocative question that can help you connect with your deepest values, hopes, and fears about money. Creating a big budget isn’t easy and isn’t always painful. Sometimes you have to make short-term sacrifices and compromises. But what if you could give up a few of the things you want “now” (a restaurant meal, a vacation, free time to watch TV) for the more important things you want “most” (no credit card debt, an emergency savings fund, max out)? from IRA)?

If you need help achieving your most inspiring financial priorities, consider signing up for a debt payoff app. The best apps can help you set up automatic payments. Or, create a bank account that offers subaccounts within your savings (or checking) account to save for specific goals. This banking feature is similar to the “stuff cash”/envelope method, but allows you to view all transactions right within your digital banking app.

conclusion

Noisy budgeting isn’t some stupid TikTok fad. That’s very good advice for your personal finances. Gen Z is using big budgeting habits to save big money, more than $600 per month and $7,200 per year. Budgeting is not only a way to increase your bank account balance, it can also help you feel more confident about your personal finances, self-esteem, and future success.

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