Saving has become challenging for many younger people. In the Wall Street Journal article, “These Apps Can Finally Get You to Save Money,” Geoffrey A. Fowler quoted the following statistic from Moody’s Analytics:
The generation America most likes fretting about – adults under 35 – has a savings rate of negative 1.9%, says Moody’s Analytics chief economist Mark Zandi. (The savings rate for everyone 50 and under is also just south of zero.)
This is not a good sign for younger people hoping to build a bright future. Furthermore, the internet and smartphones continue to make it easy to succumb to impulse spending. How could you not be enticed when anything you want is just a click away?
Thankfully there are some great mobile apps that can help folks of all ages save money.
- Acorn is an investment app that syncs to either your checking account or your credit card. It takes any spare change left over from purchases you make (rounded up to the nearest dollar) and puts it toward a recommended investment portfolio.
- Digit syncs to your checking account as well, but instead of making investments, it tracks your spending habits and withdraws small amounts of cash into a new savings account. This helps keep you from overspending.
- Level Money is similar to Digit, except that after every purchase, the app will tell you how much spending money you have left based on your specific budget.
- Mint is an app designed to give you a real time snapshot of your bigger financial picture. Mint accesses your various accounts in order to compile a complete financial outlook and management plan for your future, from recommending budgets to auto-paying bills.
At a time when instant gratification is running rampant, it is essential to keep goals, needs, desires, and finances aligned with your personal goals. If you are worried about budgeting and spending habits, consider downloading one of these free apps to keep your finances on the right track. If you’re a current client of The Wealth Conservancy and want guidance on working with any of these apps, please contact your advisors. We always love hearing from you!