Easy to Use Home Budget Software for Small Family
Best Budgeting Apps
We've compared 15 budgeting apps to find some of the best mobile apps available for managing budgets, savings and expenses. For the purposes of this list, Forbes Advisor focused on apps that are available to U.S. consumers. The eight apps shown on this list offer a variety of useful features and tools that can meet varied personal finance and money management needs.
App details are accurate as of Aug. 10, 2022.
Summary of Best Budgeting Apps 2022
Methodology
To create this list, Forbes Advisor analyzed 15 budgeting apps. We ranked each budgeting app on 18 data points within the categories of consumer ratings, costs associated with the app, security and encryption of consumers' data, desktop availability and the ability to share the app with someone else.
The following is the weighting assigned to each category:
- Mobile app rating (App Store and Google Play): 35%
- Cost: 25%
- Encryption/Security: 15%
- Account integration capabilities: 10%
- Website version available: 10%
- Ability to share: 5%
Budgeting apps with a higher overall rating relative to its number of reviews ranked higher on our list, as did those that are completely free. We also prioritized mobile apps with advanced security features, like biometric authentication, multifactor authentication and encryption. Apps that allow the ability to connect an unlimited number of accounts moved toward the top of our list, as did apps that also have a website version and allow for sharing with family or friends.
How to Budget
Creating and managing a successful monthly budget is all about knowing how much money you bring in and how you actually spend it. So the two key parts of any standard budget are your income and expenses.
Begin by calculating your total monthly income, including your salary, wages, tips, interest, child support, alimony and any passive income. Then list your essential monthly expenses. This could include costs like housing, insurance, utilities, bank fees and minimum credit card payments.
Next, list nonessential expenses, such as monthly subscriptions, streaming services, your average dining and entertainment costs and anything else you regularly spend money on but could live without. Look to past credit card and bank statements to ensure you're not missing anything. Add your necessary expenses to your nonessential expenses to determine your total monthly expenses.
Is your income greater than your expenses? If so, that's a great start. But if your balance isn't where you want it to be, it's time to create a budget. Understanding your goals will help you choose the best budgeting app for your needs.
Why Is Budgeting Important?
With more than half of Americans living paycheck to paycheck, according to multiple surveys, budgeting is critical to helping people break free from financial struggle and create financial stability. The U.S. has seen a rapid escalation in housing and health care costs over the last 30 years, leaving less money to put toward savings and retirement.
Having no financial plan or budget in place can cause stress and overwhelm you, leading to increased spending, living beyond one's means and perpetuating destructive cycles. But having a solid budget in place as part of your overall money mindfulness can make a huge difference—not only by helping you achieve your financial goals but also by reducing stress and anxiety and improving your overall quality of life.
What Makes for a Successful Budget?
Budgeting is a process that begins with identifying your financial goals, along with observing your spending and savings habits. When you truly understand how much money is going out and coming in, you're better prepared to handle both the expected and unexpected financial challenges life brings.
The mindset you bring to managing your money is important. Establishing a budget is a critical first step to gaining control over your finances. If you've never worked with a personal budget, it may take a few cycles for your habits to catch up. And, if you have money habits you need to improve, the right app can help.
What Is a Budgeting App?
A budgeting app is an app designed to help you optimize the spending and savings choices you make each month. By putting all your financial commitments and goals in one place, a budgeting app can give you better visibility into your financial choices and habits.
Similar to the apps you may use from your bank or credit union, a budgeting app may provide additional functionality such as financial goal setting and cash flow tracking across multiple financial accounts. Budgeting apps can sync with your bank and credit card accounts to provide a holistic view of your finances.
Some budgeting apps will use a specific budgeting approach—like envelope or zero-based budgeting—while others will address budgeting more generally, allowing for customization based on your needs. A fully featured budgeting app can help you track spending, manage recurring bill payment, set savings goals and manage monthly cash flow.
Do Budgeting Apps Really Work?
Budgeting apps are a great tool to help ensure you're living your budget, not just planning one. They can provide insights into your spending habits, identifying where your money goes and where you can make improvements.
As with any app, whether or not it "works" depends largely on how you use it. A challenge with budgeting generally—whether managed with an app, a spreadsheet, or more manual means—is committing not only to having a budget but to making your financial decisions in line with it. Many people find that the interactivity and automation provided by a budgeting app helps keep them motivated to stay on top of their personal finances.
How to Choose a Budgeting App
Picking a budgeting app can seem like a small decision when compared to other personal finance choices. But the right budgeting app can make a big difference in your personal financial life.
When selecting a budgeting app, be sure to consider what your needs and goals are first. The right budgeting app can provide you helpful insights and data into your expenses and savings. But before that happens, identifying your financial goals can help you refine your search for the right budgeting app for you.
Outside of your goals, here are a few features to consider before you commit to a budgeting app:
- Fees. Budgeting apps differ in their costs. Many budgeting apps are free—or offer free versions—while some charge a monthly fee. While it may be tempting to choose a free app, don't overlook the paid apps. If a budgeting app can significantly improve your financial outlook, it may very well be worth the investment.
- Features. Each app has unique features and benefits, so it may make sense to test a few different apps to see which one best fits your needs. If you've used a mobile banking app, you have a head start on the features you'll be seeking. Typical features in the leading budgeting apps include: connecting all your financial accounts, receiving notifications of upcoming bill payments, designing a budget, credit score tracking, tracking spending, setting up financial goals and more.
- Security. The security of your personal information is extremely important, especially around banking data and logins. While most budgeting apps have some level of security, some are more sophisticated than others. Be sure to look into the level of security encryption of each app. On their websites, you may find security features such as 256-bit encryption and multi-factor authentication. Along with using a secure Wi-Fi network, features like this will help deter intruders from accessing your information.
- Customer service. If you run into an issue when using a budgeting app, having a technical team you can reach out to can be helpful. When selecting a budgeting app, be sure to find out what customer service options are available, both from the app and from the desktop version, if applicable. It also may help to read reviews of others' experiences with the app you're considering.
Frequently Asked Questions (FAQs)
What is the best budgeting app?
The best budgeting app is the one that best suits your personal finances. Each of the apps recommended above has features to help you avoid common budgeting mistakes and that can apply to a variety of money-managing styles and financial goals. Some banks and credit unions also offer budgeting and tracking tools within their own apps.
What are the best free budgeting apps?
There are several excellent free budgeting apps to choose from here that may meet your needs. However, the best free budgeting app for you is the one that will best serve your personal financial goals. To find the right app for you, don't hesitate to download a few and test them out for yourself.
What is the easiest budgeting app?
While many budgeting apps claim to have user-friendly interfaces, each person has different likes and preferences. It is difficult to say which budgeting app is easiest to use, but all eight of these highly ranked budgeting apps are designed to provide a positive user experience.
What is the best budget app for couples?
The overall best budgeting app for couples is Honeydue, a free app that promotes transparency and collaboration between any two people who manage money together. Other budget apps for couples to consider include Mint, Goodbudget and YNAB.
Are budgeting apps worth it?
Yes, especially when you understand what your financial goals are and use the right budget app to reach them. According to anecdotal reports, some budgeting apps have helped users save thousands of dollars in the first year alone. They can also help consumers make more mindful purchases.
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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author's alone and have not been provided, approved, or otherwise endorsed by our partners.
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Source: https://www.forbes.com/advisor/banking/best-budgeting-apps/
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