Weddings, bachelor/ette parties, milestone birthdays, baby showers, and graduations. All important milestones that we all want our family and friends to share in; but they would rather not.
It’s not that the milestone or even the celebration is not important to them, but the cost of participating is likely to be detrimental their financial wellbeing, according to a new survey from fintech firm Achieve.
Its research found that 74% of respondents say the cost of celebrating the major milestones of friends and family negatively impacts their financial wellbeing but most are not willing to have that conversation.
Although almost half of respondents said they do not feel pressured to spend on these celebrations, more than one third feel somewhat pressured and 15% feel extremely or very pressured.
The costs can be high with almost half of poll participants 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.
However, younger generations are less concerned about speaking up when they feel their finances will be adversely impacted by taking part in a celebration – a trend that has become known as ‘loud budgeting’ – with more than four in ten Gen Zs, Millennials, and Gen Xers doing this compared to fewer than four in ten Boomers.
There was little difference in practising loud budgeting among both those with incomes above and below $50K, although men are less likely to than women (39% vs. 48%).
The good news is that two thirds of respondents said friends and family generally respond well to their loud budgeting and are supportive of their financial goals. Many are willing to trade costly celebrations for spending time together.
"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."
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