Viral loud budgeting trend is reshaping how
Americans participate in milestone events for friends and family,
Achieve survey finds
SAN
MATEO, Calif., July 17,
2024 /PRNewswire/ -- Nearly three in four Americans
(74%) find that the cost of celebrating major life milestones with
their family and close friends affects their financial well-being.
Yet most are loath to share their feelings and concerns with loved
ones, according to the results of a new survey by Achieve, the
leader in digital personal finance.
Achieve's think tank, the Achieve Center for Consumer Insights,
conducted the "Cost of Being There" survey to examine how consumers
manage the expense of participating in major life milestone events
like weddings, bachelorette/bachelor parties, milestone birthdays,
baby showers and graduations. The research found that while most
Americans believe participating in these events takes a toll on
their financial well-being, less than half (48%) said they are
comfortable citing financial reasons for declining to participate
in these events.
How 'being there'
affects financial well-being
|
Extremely
impactful
|
10 %
|
Very
impactful
|
20 %
|
Somewhat
impactful
|
44 %
|
Not very
impactful
|
17 %
|
Not impactful at
all
|
9 %
|
How much does
spending money to attend major life milestone events for friends
and family affect your financial well-being? n=1,000 Source:
Achieve Center for Consumer Insights
|
When asked how much pressure they feel to spend money attending
milestone events for family and friends:
- 15% feel "extremely" or "very" pressured
- 36% feel somewhat pressured
- 49% said they experience little to no pressure to spend
Compared to older generations, younger Americans, including
members of the Gen Z and Millennial generations, were both more
likely to say they're affected financially by participating in
milestone events and more willing to share that reason with loved
ones. As a result, 67% of Gen Z respondents said they've opted out
of participating in a milestone event over the past three years
because of the cost, compared to 47% of Millennials, 48% of Gen X
and 30% of Baby Boomers.
The impact of loud budgeting
"You only have to look at the loud budgeting trend to see that
younger Americans are generally more comfortable talking about
their financial challenges than older generations," said
Sean Fox, President of Debt
Resolution at Achieve. "Millennials came of age during the Great
Recession, while their Gen Z peers watched their parents and
families struggle through both the 2008 financial crisis and
COVID-19 pandemic. So for many, these topics are less taboo because
they've had a near-constant presence in their lives. Despite the
benefits of creating and discussing budgets, the cost of attending
oftentimes pricey events can have a lasting impact on
finances."
"Loud budgeting," a money management technique recently
popularized on social media, encourages individuals to be vocal
about prioritizing their budgets and commitment to their financial
boundaries or goals.
In examining the loud budgeting trend, Achieve found:
- Overall, 44% of respondents have tried or currently practice
loud budgeting
- The trend is more popular among Millennials (48%) than Gen Z
and Gen X (45% each) and Baby Boomers (37%).
- 48% of women have loud budgeting experience, compared to 39% of
men.
- Loud budgeting experience was nearly identical among
respondents with household incomes of up to $50,000 (43%) and over $50,000 (44%).
Among respondents who currently practice or have tried loud
budgeting, 67% of respondents said the people around them are
generally supportive of their financial goals and 59% said others
are willing to do less-expensive activities in order to spend time
together. However, 29% of loud budgeters said they've been
criticized or ridiculed for the practice and 10% don't believe
people in their lives respect the boundaries they set about
spending. In addition, far fewer respondents said that loud
budgeting has led to improvements in their physical health (35%) or
love lives (24%).
Is loud budgeting
effective?
|
|
Agree
|
Neutral
|
Disagree
|
Dating and romantic
relationships have improved
|
24 %
|
54 %
|
22 %
|
I've been criticized or
ridiculed about my loud budgeting habits
|
29 %
|
26 %
|
45 %
|
Loud budgeting has led
to disagreements with friends and family or loss of
friendships
|
31 %
|
24 %
|
45 %
|
I get invited to fewer
activities with friends and family
|
34 %
|
35 %
|
31 %
|
My physical health has
improved
|
35 %
|
43 %
|
22 %
|
I spend more time with
friends and family
|
43 %
|
35 %
|
22 %
|
My mental health has
improved
|
46 %
|
39 %
|
15 %
|
Loud budgeting has
helped me reprioritize certain friendships and personal
relationships
|
51 %
|
36 %
|
13 %
|
I do a better job
saving money
|
55 %
|
31 %
|
14 %
|
People in my life are
willing to do less expensive activities in order to spend time
together
|
59 %
|
31 %
|
10 %
|
People in my life
respect the boundaries I set about spending
|
63 %
|
27 %
|
10 %
|
Even with loud
budgeting, sticking to financial goals is challenging
|
64 %
|
23 %
|
13 %
|
Loud budgeting makes it
easier to stick to financial goals and make ends meet
|
64 %
|
27 %
|
9 %
|
People in my life are
supportive of my financial goals
|
67 %
|
25 %
|
8 %
|
How much do you
agree or disagree with the following statements about loud
budgeting? n=437 Source: Achieve Center for Consumer
Insights
|
How much is enough to spend on milestone moments?
So just how much are Americans willing to spend to attend
milestone events, and are they ok taking on debt to pay for it?
Achieve found that willingness to spend money or incur debt to take
part in milestone events frequently comes down to relationships.
Nearly half of Americans were more likely to spend over
$500 on milestone events for their
spouse/significant other, their dependent children and their adult
children, including approximately 30% of survey respondents who
said they're willing to spend over $1,000 on the milestones of their immediate
family members.
How much will we
spend?
|
Total
|
$0
|
Up to
$500
|
$501 to
$1,000
|
$1,001 to
$5,000
|
Over
$5,000
|
Work
colleagues
|
32 %
|
59 %
|
6 %
|
1 %
|
2 %
|
Other adult friends
outside of your work and family
|
22 %
|
66 %
|
9 %
|
1 %
|
2 %
|
Members of your
extended family
|
17 %
|
66 %
|
11 %
|
3 %
|
2 %
|
Your spouse or
significant other's close friends
|
25 %
|
57 %
|
11 %
|
4 %
|
3 %
|
Your best
friend
|
13 %
|
65 %
|
14 %
|
5 %
|
3 %
|
Your spouse or
significant other's family members
|
16 %
|
58 %
|
15 %
|
8 %
|
3 %
|
Your
siblings
|
13 %
|
59 %
|
16 %
|
8 %
|
5 %
|
Your parents
|
14 %
|
46 %
|
16 %
|
14 %
|
11 %
|
Your adult
children
|
16 %
|
40 %
|
17 %
|
14 %
|
13 %
|
Your dependent
children
|
15 %
|
39 %
|
17 %
|
14 %
|
15 %
|
Your spouse or
significant other
|
10 %
|
40 %
|
19 %
|
13 %
|
17 %
|
How much money would
you be willing to spend to participate in a major life milestone
for the following people in your life? n=1,000 Source: Achieve
Center for Consumer Insights
|
Achieve found that 79% of Americans typically need more than a
month to save money or make other financial arrangements to attend
milestone events, including 18% who said it typically takes over
six months to prepare financially.
"Saving money ahead of time, rather than using credit cards and
paying them off later, is a helpful strategy to mitigate the
financial strain of attending milestone events because it can
reduce or eliminate additional interest charges that can make an
expensive event even more costly," said Fox.
In addition to being willing to spend the largest amounts of
money on the milestone events of their significant others and both
young and adult children, respondents also said they were more
willing to take on debt to cover these expenses. Conversely,
respondents said they're less interested in spending money on
events for coworkers and the friends of their spouse or significant
other.
Taking on debt to
attend milestone events
|
|
0 %
|
1% to
25%
|
26% to
50%
|
51% to
75%
|
76% to
100%
|
Work
colleagues
|
52 %
|
33 %
|
8 %
|
4 %
|
2 %
|
Other adult friends
outside of your work and family
|
51 %
|
33 %
|
9 %
|
5 %
|
2 %
|
Members of your
extended family
|
41 %
|
36 %
|
15 %
|
5 %
|
3 %
|
Your best
friend
|
36 %
|
39 %
|
15 %
|
7 %
|
4 %
|
Your spouse or
significant other's family members
|
36 %
|
35 %
|
19 %
|
5 %
|
5 %
|
Your spouse or
significant other's close friends
|
44 %
|
30 %
|
15 %
|
6 %
|
5 %
|
Your
siblings
|
31 %
|
37 %
|
19 %
|
8 %
|
5 %
|
Your parents
|
26 %
|
30 %
|
20 %
|
11 %
|
13 %
|
Your adult
children
|
26 %
|
24 %
|
22 %
|
14 %
|
14 %
|
Your spouse or
significant other
|
23 %
|
27 %
|
22 %
|
13 %
|
15 %
|
Your dependent
children
|
21 %
|
23 %
|
24 %
|
14 %
|
18 %
|
How much of the
amount that you would spend on milestone events would you be
willing to take on as debt that takes more than one month to pay
off? n=1,000 Source: Achieve Center for Consumer
Insights
|
Methodology
The data and findings presented are based on an Achieve survey
conducted in April 2024 consisting of
1,000 U.S. consumers ages 18 and older, and is representative of
Census Bureau benchmarks of the U.S. population for age, gender,
race and ethnicity.
About the Achieve Center for Consumer Insights
The Achieve Center for Consumer Insights is a think tank that
leverages Achieve's team of digital personal finance experts to
provide a view into the state of consumer finances. In addition to
sharing insights gleaned from Achieve's proprietary data and
analytics, the Achieve Center for Consumer Insights publishes
in-depth research, bespoke data and thoughtful commentary in
support of Achieve's mission of helping everyday people get on the
path to a better financial future.
About Achieve
Achieve, THE digital personal finance company, helps everyday
people get on, and stay on, the path to a better financial future.
Achieve pairs proprietary data and analytics with personalized
support to offer personal loans, home equity loans, debt resolution
and debt consolidation, along with financial tips and education and
free mobile apps, Achieve MoLO (Money Left Over) and Achieve GOODâ„¢
(Get Out Of Debt). Achieve has 2,500 dedicated teammates across the
country with hubs in Arizona,
California, Florida and Texas. Achieve is frequently recognized as a
Best Place to Work.
Achieve refers to the global organization and may denote one
or more affiliates of Achieve Company, including Achieve.com (NMLS
ID #138464); Achieve Home Loans, Equal Housing Lender (NMLS ID
#1810501); Achieve Personal Loans (NMLS ID #227977); Achieve
Resolution (NMLS ID # 1248929) and Freedom Financial Asset
Management (CRD #170229).
Contacts
Erica Bigley
Vice President
Corporate Communications
ebigley@achieve.com 415-710-9006
Austin Kilgore
Director
Corporate Communications
akilgore@achieve.com 214-908-5097
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SOURCE Achieve