Loud budgeting: how Gen Z’s money habits are changing ecommerce

The rise of new social media trends is influencing how Gen Z are spending online.

Financial behaviours like loud budgeting and soft saving have gained traction recently, as young people continue to share ways to spend and save money online. 

For ecommerce businesses, this means changes to spending behavior, especially with the decline in impulse buying and more justified and informed purchase decisions. Brands will have to be more transparent, clearly show value in their products, and explain pricing in a way that helps people quickly understand why they’re worth it.

What is loud budgeting and soft saving?

Loud budgeting is a financial trend that was first coined on TikTok, which involves openly telling people that you’re sticking to a budget instead of hiding it. The goal is to be upfront about spending money, so you can stay financially on track without feeling socially pressured to spend.

This is something that has caught on significantly with the younger generation. 68% of Gen Z adults (aged 18-27) say they’ve turned down social activities because of their financial situation. 61% also say they’re happy to have financial conversations with friends, compared to 49% of 35-to-50-year olds.

Meanwhile, soft saving is a way of saving money that will still allow you to enjoy your life now, rather than aggressively cutting back for the future. Instead of strict budgeting or sacrificing experiences, it involves saving just enough to feel secure while intentionally spending the rest to enjoy a comfortable and stress-free life today.

The popularity of these trends has, of course, been spurred on by social media chatter. 41% of Gen Z turn to social media for search queries, and crucially, many are now using these platforms as sources of financial advice. According to one report, over two-fifths (42%) of 16-24 year olds used social media to access financial advice last year.

What these spending trends mean for brands

Gen Z being more vocal about saving money means that online stores are likely to take a hit in sales, particularly with the decline in impulse buying and changing spending habits.

After all, research by CMOtech reveals that 66% of UK consumers are making fewer impulse purchases, primarily because of cost-of-living concerns and minimalist shopping behaviours. It also found that 30% have committed to a “no buy” year, in which they choose to only purchase essential items.

As so much of daily life now happens online, spending decisions are often made in real-time based on what others are posting, recommending, or choosing to avoid.

This creates a kind of ripple effect – someone starting a “no spend month” can turn into a wider trend, a viral review can change how people see a product, and ongoing conversations about pricing can influence what feels “worth it” across the whole community. 

Keith Kakadia, CEO of social media agency SociallyIn, says: “Gen Z is evaluating spending itself. When saving money becomes something people share and reinforce socially, it changes how demand builds. The decision not to buy is now just as visible as the decision to purchase.

How ecommerce brands can respond to these trends

The rise of these trends means that ecommerce businesses must show value straight away if they want to connect with more budget-conscious shoppers.

“If someone has to justify your price for you, you’ve already lost them,” Kakadia explains. “Brands need to show why something is worth it within seconds, not after the purchase.”

Moreover, businesses should be transparent about the product’s pricing, as hidden costs or overpromising on value are likely to result in backlash. Instead, it’s better to be upfront about what the product is, as this will help build trust with consumers and reduce the risk of negative reactions online.

More buyers also seek justification when buying online. Therefore, content around the product should answer why they should buy it by clearly showing its value, benefits, and relevance to their needs. 

As Kakadia puts it, brands should focus on utility over hype, as consumers increasingly prioritise practical value when making purchasing decisions.

“Products that clearly fit into someone’s daily life or solve a specific problem are holding attention longer than trend-driven purchases.” Kakadia adds.

“Brands are no longer competing just for attention. They’re competing with someone’s decision to save their money. The ones that win are the ones that make the trade-off feel justified, not forced.”