Budgeting · November 25, 2020

How Personal Finance Apps Have Transformed Money Management

Today's personal finance apps and online banking solutions have made it easier than ever to track your spending and achieve your money goals. From budgeting and saving to bill payments, here are some of the ways technology is changing money management, and how you can take advantage of apps to gain more control over your financial life.


Technology is changing personal finance

With digital tools, you have more visibility into your finances and can easily track them—without hours of manual work. You can link your not just your bank account to a personal finance app but also other accounts, like your car loan, mortgage or student loan payments. This lets you see trends in how you spend your money and ways you can save. For example, you may notice recurring payments for subscriptions you no longer use. Or you might realize you spend more on work lunches or takeout during the week than you thought.

Budgeting apps can help you make changes to adjust your spending in these situations. You can use these apps to allocate a certain amount each month to a specific category, whether it's groceries, dining out, entertainment or clothing.

Other personal finance apps help you automate your savings. Just link your bank account to a savings app, and it will round up your purchases to the nearest dollar and add the difference to either a savings or investment account so you can grow your nest egg. People often struggle with being disciplined enough to save, but apps like this simplify the process and help you build better money habits without even realizing it.

Reaching your financial goals 

If you have a big, long-term goal, these apps can be beneficial, too. If you want to save for a down payment on a house, for example, you can use a budgeting app to help you figure out where you can cut back to save hundreds of dollars a month and put that money toward your future home.

Debt payoff apps can also help you reach these goals. If you have student loan debt or high-interest credit card debt, an app can help you set a goal for when to pay off the debt and show you how much to save each month to meet this target. 

Other debt payoff apps let you organize all your debt, like credit cards, student loans and car loans. Some of these tools even help you create a personalized plan for tackling what you owe, whether it's paying off high-interest debt first or focusing on the debt with the highest overall balance.

Your bank's app may offer many of these features all in one place. With banking apps, you can set up automatic bill pay for all your recurring monthly expenses, so you never miss a payment or get charged a late fee. You also can deposit checks, check your balances and access a chart with monthly averages for spending divided by category. With this information, you can then create an action plan for your finances to meet both short- and long-term goals.

Better money management

With the range of apps available today, working toward virtually any financial goal can be easier and more convenient. Personal finance apps can show you where your money is going and empower to make the changes that get you where you want to be. They can help you better understand your financial habits and give you some easy-to-use tools to build new ones.

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This information is provided for educational purposes only and should not be relied on or interpreted as accounting, financial planning, investment, legal or tax advice. First Citizens Bank (or its affiliates) neither endorses nor guarantees this information, and encourages you to consult a professional for advice applicable to your specific situation.