How App-based Banking Can Help You Budget
63% of smartphone owners use financial apps in the United States, according to Bank Rate. This comes following a recent change that came into play which allows third parties to access your financial data if you agree to it. This has opened up a whole raft of money management possibilities, commonly known as ‘app-based banking’. This type of banking includes roundup apps, which monitor your spending and round up to the nearest dollar to put into savings. Furthermore, financial management apps can plug into all of your bank accounts and credit cards to paint an accurate picture of how you are spending your money. For example, some apps offer reports on how much money you have spent on groceries. Financial-based apps can prove helpful when it comes to managing your money whatever your circumstances, whether you are an entrepreneur trying to budget effectively, a parent with a young family or a student trying to save money.
The accessibility of finance apps
Budgeting apps are designed to be easy to use, which is particularly helpful for people less familiar with mobile technology. The emergence of technology classes for older adults is helping to reduce the gap between generations when it comes to using apps and mobile devices in general. Meanwhile, your personal accounts can all be visible within an app and on various devices, making it easier for you to have a handle on your outgoings and savings.
The ‘roundup’ apps
There has been a surge in the use of so-called ‘roundup banking apps’, with start up companies having accrued in excess of 100,000 customers. Roundups work by connecting to your bank accounts and credit and rounding up every transaction to the nearest dollar. Debits are taken out weekly for the roundups of that period. This provides a very easy way of saving, as money is automatically invested in an account if your choice. The latter include stocks and shares and general investment accounts.
The ‘money management’ apps
If you have popped into a grocery store for a couple of things only to come out having spent three times what you anticipated, you’re not alone. There are various strategies superstores use to make customers overspend, and many of them work. This is where money management apps can help. These tap into your current accounts and credit cards and intelligently categorize your spending. This allows you to set budgets and create reports to give you an overview of how your money is spent. This also has the added benefit of showing you all your balances on one screen. The advantage of this type of app is that it can incentivize you to become more frugal in areas you weren’t aware you were spending so much money.
Finance apps: helping you manage your money effectively
It can be easy to lose track of our expenditures, particularly with the emergence of online, mobile and contactless payment options. This can make it harder for us to save money and live within a budget. However, finance apps can shed light on our spending habits, motivating us to be be smarter with our outgoings, while also being able to help us save money relatively easily.