Years ago, did you ever think we’d have everything we needed in the palm of our hand? Our smartphones have everything we need – including the key to financial empowerment. In fact, people are now putting more time into personal finance apps, and the pandemic may be the culprit to thank for all of this.
How the Pandemic Drove the Rise of Financial Apps
According to Global Wireless Solutions, consumers were spending more time on their phones during the pandemic, with 63% of that time spent on personal finance apps.
During the pandemic, people felt isolated from everything, so smartphones helped them stay connected to the world. In addition, more people needed financial assistance as jobs were ending, and the rate of people needing financial assistance increased. Smartphones were a common thread and resource for most people, so looking to apps for assistance during this financial crisis seemed like a natural next step.
As a result, 99% of Generation Z (born after 1996) and 98% of millennials (born between 1981 and 1996) are now using a digital banking app for many of their financial tasks. Time spent on these apps has also increased to an average of 57 minutes. Some of these tasks include applying for loans, checking their credit scores, viewing their balances, or depositing checks. Even now, three years after the pandemic’s start, with the cost of living still a concern, many of these habits picked up during the pandemic have stuck with consumers, and personal finance apps have become a new social media for many.
Why Personal Finance Apps Are So Important
Managing money can be a difficult task for many people. Successfully managing money involves many components and can leave one feeling stressed. When this happens, the individual will likely quit before meeting their goals.
Personal finance apps remove much of that stress by combining many of those components in one place to make it easier to manage. Users can keep track of their budget, spending, and income with a few clicks on their phone. New technologies make it easy to maneuver throughout the app so that you’re not as worried about what financial education you don’t have because the app pulls everything together for you and tells you what you need to know. In the end, this means that more people are managing their money better and winning in their finances.
Here are some of the benefits many get from financial apps:
- Manage finances from anywhere
- Organize their finances better
- More confidence in making financial decisions
- Better success in meeting their financial goals
How To Get Started Using Personal Finance Apps
If you have yet to join the personal finance bandwagon, it’s not too late. If you’ve tried managing your finances in the past (without using a finance app) and failed miserably, now’s your chance to make it right.
There are way too many finance apps to be able to share them all, and not all of them come with the same features. For instance, some are free or have trial periods, while others charge a monthly fee. Still, others help you to learn to invest, while others do not. It’s best to research as many as possible to compare the pros and cons and see if they align with your personal financial goals.
However, we couldn’t end this post without sharing a few apps that could prove useful during your research.
- Mint is an app that helps users track their spending and set goals.
- Rocket Money is a budgeting app that empowers individuals to save more, spend less, and take back control of their finances. Along with canceling subscriptions you didn’t know you still had.
- You Need a Budget (YNAB) is a budgeting app that helps you save money and helps you to get out of debt.
- Chime is an award-winning mobile financial app and debit card that’s FDIC-insured with no monthly fees. The checking account works with their Credit Builder, a free option for members to build their credit safely.
- Yotta Savings is a prize-linked savings account that fosters a “save to win” mentality where the more you save for yourself, the more you could earn prizes.
- Acorns is a popular saving and automated investing app that makes it easy to invest your spare change to help it grow
- Fresh EBT by Propel is an app that helps EBT cardholders manage their benefits in real-time, save money and earn income.
- EveryDollar is a popular app for tracking and saving money.
The Bottom Line
With so many personal finance apps to choose from, it’s easier than ever before to manage your money. While the pandemic may be remembered as a time of isolation, pain, confusion, and grief. It’s also noted as a time that made people take a harder look at their finances. Thanks to personal finance apps, they’re now feeling more empowered than ever.
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