Jamie Spencer
Understanding your financial situation—everything from income and expenses to credit scores and investments—is key to achieving financial stability. For over 15 years, PCMag has covered the best apps for managing personal finances and budgeting. Using a personal finance app can help you stay on top of your money, providing insights on everything from spending habits to debt reduction. Many of these apps are free, while others come with a small monthly fee. Among the top contenders are Simplifi for ease of use, Quicken Classic for detailed money management, and YNAB (You Need A Budget) for those who’ve struggled with budgeting in the past. Here’s a closer look at these apps and a few others that might better suit your needs.
Security in Personal Finance Apps
The personal finance apps we reviewed prioritize security. Most require you to connect to your bank accounts, credit cards, and other financial accounts, downloading transaction data to give you a clear picture of your finances. To link accounts, users typically provide login credentials, followed by additional security measures for enhanced protection.
Many of these apps use encryption and third-party services like Plaid to ensure secure data transmission. However, users also play a role in safeguarding their information. Here are three tips to maximize security:
- Use unique usernames and passwords for your finance apps and linked bank accounts.
- Enable two-factor authentication wherever possible, even if it means taking an extra step during login.
- Keep sensitive personal information, like your birthdate or city of birth, private to prevent unauthorized access.
Best Free Finance Apps
Most personal finance apps offer a free version or tier. They often make money by displaying ads for credit cards, savings accounts, or other financial services.
NerdWallet is our top pick among free apps, offering account imports, transaction management, and detailed insights into your credit score. It also provides a wealth of articles and tutorials on personal finance. While NerdWallet is supported by ads, they are generally non-intrusive. For credit score tracking, Credit Karma also stands out, offering daily updates from two major bureaus and explaining the factors that affect your score.
Features of Personal Finance Apps
Personal finance apps go beyond budgeting. Here are some of the benefits they offer:
Track All Transactions in One Place: Connecting your app to all bank and credit card accounts allows you to monitor transactions without logging into each account individually. This feature helps you spot suspicious charges quickly, enabling you to notify your bank promptly if needed.
Categorize Income and Expenses: After syncing transactions, most users spend time categorizing them correctly. Whether it’s salary, rental income, groceries, or utilities, categorizing transactions is key to accurate reporting. Many apps also let you split transactions or add custom tags to better track spending.
Get a Bird’s-Eye View of Finances: The best apps feature a dashboard that offers an overview of your financial situation, from account balances to pending bills and income-versus-spending ratios. This hub helps you stay aware of your finances at a glance, providing quick insights and easy access to deeper analysis.
Budgeting Made Easier: Managing expenses so they stay below income is crucial. Personal finance apps help by allowing you to create budgets based on past spending patterns. Quicken Classic, for example, allows users to use historical data for more accurate budgeting.
Set and Track Financial Goals: Apps like NerdWallet and Monarch Money allow you to set goals, such as building an emergency fund. You input a target amount and date, and the app calculates how much you need to save each month, automatically tracking progress when linked to relevant accounts.
Plan for the Future: Some apps, like Quicken Classic, offer tools for more comprehensive financial planning, including retirement strategies, debt reduction, and tax planning. Others, like Empower, provide retirement planning tools but may also try to sell advisory services.
Managing Bills and More on the Go
Most apps can help you keep tabs on your bills, alerting you when payments are due. While only a few, like Quicken Classic, allow you to pay bills directly from the app, others can sync with billers or let you manually track payments.
When you’re away from home, mobile versions of these apps offer basic features like checking balances, viewing transactions, and tracking spending. Though the mobile apps are often less feature-rich than desktop versions, they provide valuable insights on the go.
Learning and Improving Your Financial Literacy
Personal finance apps also serve as educational tools. Apps like NerdWallet provide valuable resources on topics ranging from bankruptcy to investments. Credit-focused apps like Credit Karma and NerdWallet help users understand how their credit scores are calculated and offer strategies for improvement.
For those looking to boost their credit scores, these apps offer insights and suggestions, such as using products with favorable interest rates. However, frequently opening and closing credit accounts can harm your score, so it’s important to use these insights wisely.
Calculating Net Worth
Whether or not your personal finance app tracks your net worth depends on what information you choose to share. If you only use the app for budgeting and managing everyday transactions, you may not include all your assets, like real estate or retirement accounts. You have the option to exclude certain accounts if you prefer a simpler view.
Overall, these apps are powerful tools for taking control of your financial life, helping you to make informed decisions, set goals, and understand the bigger picture of your financial health. With robust security features, educational content, and practical tools, they make it easier than ever to navigate your financial future.
