A financial app is a downloadable, mobile financial management tool that can be used for a variety of purposes, including managing a budget, saving, investing, managing shared expenses, managing your credit, and much more.
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Financial apps are incredibly popular - nearly two thirds of smartphone users have at least one financial app on their phone. And given their potential, this is really no surprise. The mobile money market (including banks and third parties) now processes $1.3 billion every day; as banking, investing and saving all move online, using an app to manage these aspects of your life simply makes sense. Not every app is created equal though, and as with any financial decision, it’s important to understand the risks and benefits of your choice. So to help, we have broken out everything you need to consider when using these tools - starting with a list of some of the most reputable and popular financial apps on the market. Click on any of the names in the table below to learn more about them.
A financial app is a downloadable, mobile financial management tool that can be used for a variety of purposes. Typically, financial apps integrate with the other financial aspects of your life, and are therefore simpler to use than standalone budgeting methods, and much more accessible than traditional wealth management tools.
Financial apps have a wide range of uses, including:
The majority of people use financial apps for two main purposes: tracking spending, and paying bills. A massive 92% of 18 to 37 year olds report using financial apps for just these reasons. And at this level, using a financial app is very simple:
There are a few major types of financial app - although one or two of the major players offer cross-functionality. In general though, they fall into one of the following categories:
Investing can be very active with frequent trading (i.e. day trading) or more passive. You can learn about day trading at Wealthsimple, which is one of the most popular trading apps.
There are many benefits to using financial apps, including:
In practice, suspect apps can sometimes be easy to spot (for example, the app displays your full account numbers), or might be harder to identify (for example, if a platform does not utilize end-to-end encryption). It is extremely important to make sure you are using a secure, reputable app for your financial management.
On a similar note, identity theft is sometimes a concern for financial app users, as financial apps hold almost all of your personal information in one place. Again, this means ensuring the safety of the app you use is paramount.
Choosing the right app for you need not be complicated. Simply follow these guidelines:
What is a financial app?
A financial app is a downloadable, mobile financial management tool that can be used for a variety of purposes, including managing a budget, saving, investing, managing shared expenses, managing your credit, and much more.
How much do financial apps cost?
The cost of financial apps vary; some are free, others have some functionality for free and then require a fee for more advanced use, and others require a subscription or have a download fee. Be sure to thoroughly research the cost structure of the apps you are considering, to understand both their initial and ongoing costs.
Can I link my financial app to my bank account?
Many financial apps will allow you to link your bank accounts, credit cards and investment vehicles to your app, so that you can seamlessly manage your finances from one location. Ensure the app you are looking at has this option before you download it though, as some apps require manual data entry.
Why would I use a financial app?
You can use a financial app for many different reasons: saving, paying off debt, automating bill payments, maintaining a budget, investing, managing assets, managing shared expenses, and so on. Almost any aspect of personal finance can be handled through a dedicated app.
How do I use a financial app?
Financial apps are generally pretty easy to use. You can download them onto your phone (or tablet), and then input your personal information. Many link with your bank accounts and credit cards so that data entry is automated. You can then use the app for the purpose you need - managing a budget, investing, saving, and so on.
Are financial apps safe to use?
Financial apps can be safe to use, if you go with a reputable company. Good financial apps will have security measures on par with mobile or online banking, but there are providers who do not take these precautions. Thoroughly research a company before downloading its app to ensure it's safe.
What's the best financial app available?
There are many different financial apps available, for all sorts of purposes, so choosing the best one for you depends on what you need it for. There are some multi-purpose apps that offer lots of different functionality, so if you're hoping for a one-stop-shop for your money management, one of these is probably the best bet.
Do I need to be rich to use an investing app?
Absolutely not! The barrier to entry for investment apps is very low, and many do not have a minimum threshold. There are in fact an increasing number of micro-investment apps geared specifically for those hoping to make small investments rather than big ones.
