Personal finance apps are crucial tools for good budgeting. Simply put, money management isn’t always easy. And unfortunately, personal finance skills are not typically taught in school. No one shows you how to budget, use credit, or save for the future. So unless you had financially savvy parents, you’re probably just figuring things out as you go. If you could use extra help and guidance, a personal finance app is an ideal support solution.
What is a Personal Finance App?
Personal finance apps are tools available on your smartphone, mobile device, or computer that help you perform financial tasks. Examples includes tracking your spending, creating a budget, paying off debt, or starting an emergency fund. Financial apps can also offer insights and information to increase your financial literacy.
Best Personal Finance Apps in Canada
If you’ve worked hard to pay off debt but can’t get the momentum you want, a debt management app is an ideal way to organise your financial goals. Here are the four best budgeting apps in Canada:
1. YNAB (You Need A Budget)
YNAB (You Need A Budget) is a phone, mobile device, or desktop app designed to track money goals and increase the financial knowledge of its user. It is recognized as one of the best budgeting apps around. You can use YNAB to track expenses, set goals, and make more intentional decisions with your money.
YNAB also offers debt repayment plan services. You can set up payments where you start with your smallest balance and work your way up. Of interest, extra features like loan calculators depict the possible savings (both interest and time) when you put additional money toward your debt.
YNAB includes access to articles, live videos, workshops, and guides. You can use YNAB to share budgets with up to six people.
- Free trial: 34-days
- Cost:
* Annual Plan: $8.25 USD per month, $99 USD paid annually1
* Monthly Plan:14.99 USD per month - Get it: iOS and Android
2. Debt Payoff Planner
As the name suggests, the Debt Payoff Planner helps you get out of debt. The app visualises, organises, and manages your debts, all in one place. That type of progress tracking can motivate you to stick to your financial goals. The app keeps track of your wins as you pay off your debt so you can celebrate your repayment victories!
The Debt Payoff Planner also allows you to compare debt repayment strategies (like the snowball and avalanche methods) to help you pick the right option.
- Free trial: No free trial
- Cost:
* Basic Plan: $0 per month
* Pro Plan: $2 per month2 - Get it: iOS and Android
3. KOHO
KOHO is a Canadian fintech company that offers a budgeting and banking app all rolled into one. You can use the KOHO app to access tools and insights that help you understand where your money goes. It also provides a balance update each time you make a purchase.
The app offers useful features like “RoundUp,” which rounds up every purchase you make to the next dollar and puts it into savings. For instance, if you buy a coffee for $3.50, RoundUp will round your purchase to $4.00 and put $0.50 into savings. While it might not seem like much, that spare change can add up.
- Free trial: 30-days
- Cost:
* Essential: $0-4 per month
* Extra: $9 per month
* Everything: 19$ per month3 - Get it: iOS and Android
4. PocketSmith
PocketSmith is a New Zealand-based personal finance software with operations in Canada since 2008. The app lets you track your spending, forecast your daily account balances, and create custom budgets to help you take control of your money. The software also connects to your bank so you can easily access your transactions and balances in one central place. Plus, you can grant advisor access to your PocketSmith account to share your financial journey with a partner, family member, or coach.
- Free trial: No free trial
- Cost:
* Foundation: $9.99 USD per month on annual plans, $14.95 per month on monthly plans
* Flourish: $16.66 USD per month on annual plans, $24.95 USD per month on monthly plans
* Fortune: $26 USD per month on annual plans, $39.95 per month on monthly plans4 - Get it: iOS and Android
Pros and Cons of Personal Finance Apps
Before you select a personal finance app, consider these pros and cons:
Pros
- Convenience: With a personal finance app, you can manage, monitor, and make financial transactions from almost anywhere via your phone or mobile device.
- Financial literacy: Many mobile apps provide access to a breadth of information that can help improve your financial literacy. When it comes to your money, knowledge is power.
- Gamification: Some mobile apps use gamification and other techniques to make saving simple and fun.
Cons
- Cost: Many debt management apps offer a basic free version, but you sometimes must pay a monthly subscription fee to access all app features. This doesn’t mean you shouldn’t use the app, but double check the cost and ensure it fits within your budget.
- Security: While most personal finance apps take security seriously, breaches and failures can occur. Try not to access financial information on public wifi, as it is not private (i.e. you could compromise your personal or financial information).
How Can Personal Finance Apps Help You Manage Debt?
A personal finance app acts like a financial helper in your pocket. It can simplify daily financial tasks and provide insights that increase financial awareness and understanding. And with the rise of AI-driven financial advisory services and technologies, there’s no telling how sophisticated personal finance apps will get in the future.
Take control of your money with financial planning tools and personal finance software.
Need More Help With Your Debt?
If you use a mobile app to manage your debt but could use additional support, contact a Licensed Insolvency Trustee (LIT). A LIT can review your financial situation and suggest a debt solution that’s right for you. For a free, no-obligation consultation, contact Allan Marshall & Associates at 1-888-371-8900 or request a call online.
