Managing Your Money With Banking Apps

In the US alone, nearly two-thirds of smartphone users have banking apps. A recent change in the law means that, with the user’s permission, companies are allowed to access personal financial data. This has led to the rise of ‘app-based banking’. There are of course various ways in which you can save money through sensible daily choices. However, alongside this, banking apps offer a way of helping you manage your money effectively and with little stress.

Banking apps: designed for all

One key factor with banking apps is their accessibility, making them a good budgeting option for people of all ages and levels of IT proficiency. For those relatively unfamiliar with smart technology, there are various classes in technology for older people (or younger, IT-shy generations) that can help boost confidence and knowledge. As well as the easy functionality of banking apps, another appealing aspect is the fact that all your accounts can be seen within one app, on different devices. This makes it easier for you to manage your money effectively.

The rise of the ‘roundup’ apps

An increasingly popular type of budgeting app is the ‘roundup banking app’. This type of app links to your bank accounts and registers each transaction your cards. The app rounds up every transaction you make to the nearest dollar – whether this is 1 cent or 99 cents. Each week, the tally that has been rounded up is debited from your personal accounts and put into an account of your choice. This account can include stocks and shares and general investment accounts. The idea is that you don’t notice the incremental amounts of money going out of your account each week and yet, over time, end up saving a worthwhile amount of money.

The ‘money management’ apps

There are several tricks superstores use to encourage overspending, and many of them work. This is why so many of us struggle to come out of a spontaneous shopping trip with just one or two items. Money management apps are an effective way of helping you be more aware of your spending habits. These apps connect with your personal bank accounts and put your outgoings into different categories (for example, groceries, gas, haircut). With a money management app, you can set budgets and create reports so that you can see get a clear picture of your spending habits. What makes it such an effective app is the shock factor that often comes from it: you often discover you are spending a lot more on certain things than you realized and are more motivated to be more aware of your outgoings.

Banking apps: a stress-free, easy way of managing money effectively

The ease with which we can pay for anything these days means that it is also easy to lose track of how much we are spending each day. This can make it challenging to budget effectively, potentially adding a lot of stress to your life. However,  the various banking apps emerging today offer some helpful ways for us to gain a clearer understanding of our daily outgoings and how we can be smarter with our spending. They can also take the stress out of budgeting and help us to save money effectively and on a long-term basis.