Budgeting is a crucial life skill that helps individuals and families manage their finances, save for the future, and work toward financial stability and independence. However, traditional budgeting methods can often feel tedious and restrictive, especially for younger generations. Enter "loud budgeting" – a trend that's gaining popularity among Gen Z, particularly on platforms like TikTok. But what exactly is loud budgeting, and how can it help your family? Let's dive into this exciting approach to money management.
Also, we’ll dive into how teens can save money and set financial goals using the Modak app and how they can use their Visa® debit card1 designed for kids and teens and payment link to receive earnings from side hustle activities without any monthly subscription fees4.
Loud budgeting is a modern take on traditional budgeting, like the 50 / 30 / 20 rule. It involves openly discussing and sharing budgeting goals, progress, and achievements with friends, family, and even social media followers. This approach not only makes budgeting more engaging but also creates a supportive community where individuals can motivate each other to stay on track.
Gen Z is known for its openness and transparency, especially on social media. They value authenticity and community, which is why loud budgeting resonates with them. By sharing their financial journeys, they can receive encouragement, tips, and accountability from their peers. Moreover, loud budgeting can turn a mundane task into something fun and social, making it more appealing to younger audiences.
The first step in any budgeting process is to set clear financial goals. These could be short-term goals like saving for a new gadget or long-term goals like building an emergency fund. Make sure your goals are specific, measurable, achievable, relevant, and time-bound (SMART).
To manage your budget effectively, you need to know where your money is coming from and where it's going. Track all sources of income, including allowances, part-time jobs, and side gigs. Similarly, keep a record of all your expenses, categorizing them into needs (e.g., groceries, bills) and wants (e.g., entertainment, dining out).
Once you have a clear picture of your income and expenses, it's time to create a budget plan. Allocate a certain amount of money to each category based on your financial goals. Remember, the key principle to successful budgeting is to spend less than you earn.
This is where the "loud" part comes in. Share your budgeting goals and progress with your family, friends, or even on social media. Use hashtags like #LoudBudgeting and #BudgetGoals to join the community and gain support. You can also use apps like TikTok to create fun and engaging content about your budgeting journey.
When you share your budgeting goals with others, you create a sense of accountability. Knowing that others are aware of your goals can motivate you to stay on track and make better financial decisions.
Loud budgeting fosters a sense of community. You can share tips, celebrate milestones, and even seek advice from others who are on the same journey. This support system can be incredibly valuable, especially when you're facing financial challenges.
By openly discussing budgeting and money management, you can improve your financial literacy. You'll learn new strategies, gain insights into effective budgeting practices, and become more confident in managing your finances.
One of the ultimate goals of budgeting is to achieve financial freedom. This means having enough savings, investments, and income to support your desired lifestyle without worrying about money. Loud budgeting can be a powerful tool in this journey, as it encourages discipline, accountability, and continuous learning.
At Modak, we understand the importance of teaching kids and teens about money management. Our app offers a range of features that can help your family with budgeting and earning money.
With Modak, kids and teens can earn MBX, our in-app reward point system, through various activities. By walking 5,000 steps every day, they can earn 10 MBX per day(2)(3). Completing challenges in the app can also help them earn more points. These points can be converted into dollars and spent using their Modak Debit Card. By walking, children can earn up to 70 MBX per week, which translates to an extra $8 per week just by staying active.
Parents can easily manage chores and payments within the Modak app. They can set up custom chores with due dates and payment amounts. When kids complete their chores, they can mark them as done in the app and receive their payments directly into their Modak account. This feature helps teach kids the value of hard work and financial responsibility.
Both parents and kids can create savings goals in the Modak app. These goals can be for anything – a new bike, a video game, or even a college fund. By contributing to these goals, kids learn the importance of saving and planning for the future5.
Teens can create payment links within the Modak app, making it easy for anyone to pay them for gigs or part-time jobs. Additionally, direct deposits can be set up for teens who work, allowing their earnings to go directly into their Modak account.
Modak offers 24/7 customer support with real agents who respond in under three minutes. Whether you have questions about the app or need assistance with a transaction, our support team is always available to help.
Loud budgeting is an innovative and engaging way to manage money, especially for younger generations. By openly sharing budgeting goals and progress, families can create a supportive community that fosters financial responsibility and literacy. Modak Makers is here to support your family's budgeting journey with tools and features designed to make money management easy and fun.
Ready to take control of your finances and teach your kids valuable money skills? Download the Modak app today and start your loud budgeting journey!
