Winnipeg financial expert talks ‘loud budgeting’ and the changing approach to money

For one financial expert, the concept of loud budgeting is not uncommon. And neither is it widely recognized.

Joe Macek, an investment adviser and portfolio manager with iA Private Wealth in Winnipeg, said the term refers to the discussion of individual finances that is more open with other people. It’s new, he said, and reflects a changing attitude that people have when discussing their money.

It’s a term that, while consisting of drawbacks, has its positives.

“Many people, especially the younger generation, are becoming more and more transparent about money. They are breaking the taboos that the previous generations might have had,” Macek said.

“The younger generation is obviously fostering conversations on budgeting, saving and investing. Not only are they sharing it with their friends and family, but some of them go on to YouTube and social media to share their details online.”

It’s an approach to money that Macek said can promote greater financial literacy and informed decision making. Sharing is a benefit, he added.

To him, the term may likely have been coined by millennials or Gen Zs. With a shift in the way people, especially younger people, discuss their finances, he added that it’s making do with many of the taboos that older generations may have had.

“My parents never really openly discussed how much they made or where their savings were. In fact, they didn’t really understand a whole lot about the stock market itself and how to make investments… as the industry grew, there became a more prevalent emphasis on financial planning (and) financial projections,” Macek said.

“If you spoke to a lot of my generation, that would be a pretty common theme. That you just didn’t talk about money.”

But while that’s changed, such openness could bring with it a set of drawbacks. Macek highlighted three including judgment from others, a loss of privacy, and a knack for peer pressure where your social circle could try to convince you to do something you can’t afford.

Yet, with these drawbacks, he noted that sharing to an extent can have a greater benefit.

As a financial adviser, Macek also posts videos on his YouTube channel discussing financial advice and resources that people can use. He said he’s licensed to provide financial advice, unlike some financial influencers out on social media. One of the differences between him and such influencers, he added, is a duty of care.

It’s why he said it’s important to ensure the information someone hears and acts on is trusted.

“They can easily put out information and it can be viewed, and it can be acted upon,” he said.

6:00 Your Money