Here’s how to practice ‘loud budgeting’ with your kids—from a family finance expert

At the end of 2023, TikToker Lukas Battle came up with a new term for the trend that would take over 2024—loud budgeting. It’s a strategy that helps everyone save a little more money in their pocket by being realistic about budgets and honest about your spending limits. Between inflation and the tween-craze at Sephora running rampant, it can be very difficult for families to save. 

But that doesn’t mean it’s impossible. We asked a family financial expert for her tips on how to use loud budgeting and make it work for your family. 

Jennifer Seitz is the Director of Education at Greenlight, the family finance company on a mission to help parents raise financially smart kids. A Certified Financial Education Instructor (CFEI) and a mom of three, Jennifer uses her expertise to teach kids and parents alike about smart money management. 

As parents, your money habits can influence your child’s. Modeling how to save and budget are some ways you can help them learn important money concepts. Keep reading to find out Jennifer’s expert insights into teaching children age-appropriate, financial values and budgeting tips.

What is loud budgeting? 

“Loud budgeting” is a concept that encourages open discussion and prioritization around financial decisions. It rejects societal pressures to spend excessively when an opportunity, such as a social invitation, may jeopardize financial goals and priorities. It emphasizes being vocal about making money-conscious choices and confidently asserting our personal financial boundaries to avoid spending beyond our means. This trend encourages honesty and makes space for commitment to long-term financial goals. In a world dominated by social media, there’s often a pressure to keep up with a lifestyle filled with material items. Loud budgeting provides refreshing honesty. It’s not just about saying “I can’t afford it,” but proudly proclaiming “I’m choosing not to spend on this right now because I have other financial priorities.”

How to discuss financial values with kids in an age-appropriate way 

As a parent, you can tailor conversations about mindful spending according to your child’s age or developmental stage. From a young age, talk to your child about needs vs. wants 

Needs: Items they need to live

• Food
• Clothing
• Shelter

Wants: Items they want for enjoyment

• Toys
• Treats 

As your child gets older,  explain why it’s important to prioritize needs over wants. Money isn’t unlimited, so they’ll need to make spending choices and think carefully how to get the most value from their money now and in the future.

You can also  discuss your  own intentional spending choices with tweens and teens, based on your family’s financial values, which will model responsible money management. Whether it’s prioritizing savings for a family vacation, future education or longer-term financial goals, talk about your everyday money decisions and how they connect to the family budget. Both wants and needs have a place in a budget, and balance is the key! 

Combat the craze of feeding into the latest trends

To combat the craze of feeding into the latest trends, you can help your child understand that spending in one category will mean less spending in another category. Encourage them to carefully think through purchases in advance. They should ask themselves whether a product will give them lasting enjoyment or if it’s simply another passing fad. You can also help them take a look back at their prior spending for any lessons learned. If they’ve ever spent money they regretted or wished they would have spent it on something else, turn their money mistakes into teachable moments. 

Show them how to categorize spending and create a plan for how they choose to spend and save going forward. That’s a budget! Help them cultivate a habit of setting future financial goals and saving for them—from buying concert tickets to purchasing their first car or saving up for a graduation trip. A dollar saved now is a dollar ready for future enjoyment. 

How to teach the value of money 

To help your kids understand the value of money, you can encourage them to earn their own through age-appropriate activities, such as chores or part-time jobs. This can instill the value of hard work and earning a paycheck. Allow them to make their own spending decisions within a reasonable budget, and provide guidance and support as needed. Be clear on expectations that you have and talk to them about the importance of financial goals, explaining that there are trade-off decisions for every dollar spent. By giving your children hands-on experience with money management and instilling good financial habits from a young age, you can help them develop essential life skills and a positive attitude toward money.

As kids get older, you can teach them the time value of money, and how responsible investing can help them meet future financial goals. For teens, you can introduce more advanced concepts, such as credit history, student loans, tax filing and more money responsibilities they will have as independent adults. Use relatable examples and real-life scenarios to help your children grasp financial concepts and values effectively.

Tips for setting budgets (and sticking to them)

Teaching your kids about budgeting is an excellent first step to prepare them for a bright financial future. Explain that a budget is simply a plan for your money! It starts with the money coming in and includes how much you’ll spend—on what—and how much you’ll save for your financial goals. Here are some tips for successful budgeting:

Define clear saving goals: Start by setting specific financial objectives, such as saving for a concert ticket or first car college. Break these goals into smaller, manageable steps to create a realistic saving amount that aligns with your priorities. Regularly track your progress to stay motivated and adjust your budget as needed to stay on target.

List your expenses: This helps you see where your money actually goes. Use budgeting tools like apps or spreadsheets to categorize them. Keep tabs on spending by tracking expenses regularly. Compare planned spending to actual spending to identify areas for potential savings and consider adjustments to stay within your budget.

Stay consistent: The most important part of a budget is sticking to it! Remind yourself of your goals and don’t be hesitant to speak up about it! That’s what loud budgeting is all about. 

How to create opportunities for children to earn money

There are many ways for kids to earn money—whether at home, in the neighborhood or around your community, depending on their age.

For kids of all ages, you can assign chores with a set dollar amount for each completed chore. From washing dishes to taking out the trash—this teaches kids the value of hard work and helps them understand the concept of earning money for their efforts. You also could assign one-time jobs, for things like helping clean the garage or raking leaves.

Kids and teens can also take on odd jobs or small tasks outside of the home, like washing cars or dog walking. They earn extra cash while gaining valuable work experience. They can also explore potential part-time jobs where you live. They’ll learn responsibility, develop new skills and practice how to save and budget their money.