“Save as much money as you can!” This isn’t just a piece of advice but a slogan that always emerges during an economic crisis. Be it the great depression of 1929 AD or the post-covid global recession, people always seek to save money for rainy days. This is the point where “money-saving apps” come into play. Your mind must be hovering with numerous queries like- What are money-saving apps? Why has the usage of such apps boomed globally? You will get to know all of it in this write-up.
What are “Money-Saving Apps”?
As the term suggests, money-saving apps are mobile applications designed to help users better manage their finances, save money and make smarter financial decisions. These apps gained immense popularity irrespective of recession & economic crisis. You must have also looked for ways to save your hard-earned money and better manage your finances. These apps are designed to help you save money on everything from groceries to utility bills.
Do you know they can also help you to invest in stocks with profitable returns? Also, they aid in tracking your expenses, setting budgets, and finding the best money-saving deals. You can access these apps on your smartphone or computer. They use advanced algorithms and machine learning to analyze spending patterns and suggest ways to save money.
Types of “Money-Saving Apps”
Some of the popular types of money-saving apps are-
|Types of Money-Saving Apps||Features Offered||Examples|
|Budgeting Apps||Track expenses, set budget goals, and monitor the progress while achieving the goal.||Goodbudget, Spendee, PhonePe, Money Manager Classic Lite, Money View, Google Pay, and Apple Wallet.|
|Cashback Apps||Cashback on purchases made at certain retailers or products||PaisaWapas, CashKaro, magicpin, Freecharge, Zingoy|
|Coupon Apps||Help to find and apply coupons on online purchases||Myntra, DesiDime, Thuttu|
|Investment Apps||Allows to invest in profitable (high ROI) stocks, bonds, and other financial products||5paisa, Zerodha, Upstox, Groww, Paytm Money, Angel One|
|Money Management Apps||Provide a comprehensive overview of finances including bank accounts, credit cards, and investments to manage money effectively||Money Manager Classic Lite, Splitwise, Money View app, Walnut App, Tax Calculator, Moneycontrol|
Many of these apps are designed to be accessible to anyone with a smartphone or computer and are often free or low-cost. If you are looking for ways to save money but may not have the resources to pay for more expensive financial management tools. Then such apps are attractive options for you.
How does a “money-saving app” work?
Whether you use a free app or paid app, the fundamental strategy to help you save money is the same. The money-saving apps use the following working strategies-
- Budgeting: Many such apps allow you to set a budget for different categories of spending, such as groceries, entertainment, and transportation. The app can track your spending in each category and alert you when you are approaching your budget limit.
- Round-up savings: Some apps allow you to link your bank account or credit card and round up each transaction to the nearest set amount. The difference is then transferred to a savings account, helping you save without even thinking about it. It automates the process of rounding up the spare change in your wallet.
- Analyze ingoing and outgoing monetary transactions: This analysis is done by using AI (artificial intelligence) to discover and calculate probable savings.
- Cashback rewards: Some apps offer cashback rewards for purchases made through the app or at certain retailers. You can then use the cashback to save or invest.
- Price comparison: Some apps allow you to compare prices at different retailers to find the best deals and save money on your purchases.
- Investment advice: Some apps provide investment advice and help you invest your savings in a diversified portfolio of stocks and bonds, potentially earning higher returns than a traditional savings account.
Thus, these apps aim to make it easier for you to manage your finances and save money by using technology to automate and simplify the process. Kindly note that these are means only to save money and earn rewards/coupons. Unlike money games, you cannot earn money through money-saving apps.
Why are money-saving apps getting popular?
Now, the most important fact that you seek to know is the reason behind the boom of money-saving apps amid an economic crisis. These apps are gaining immense popularity due to the following reasons-
- To balance financial instability: Economic crises cause financial instability and uncertainty, which can make people more conscious of their spending habits and encourage them to seek ways to save money.
- Expense tracking: Many people may have experienced a decrease in their income or loss of their job during economic crises. Eventually, people desperately sought apps that can track their expenses and find ways to stretch their budgets further.
- User-friendly interface: Advancements in technology and the increased adoption of mobile devices have made money-saving apps accessible and affordable. Thus, the usage of such apps has increased to manage finances efficiently and effectively.
- Deals and discounts on everyday expenses: Certain expenses like groceries, transportation, and entertainment are unavoidable. Thus, people look for deals and discounts to manage those expenses at affordable costs. Thus, money-saving apps are perfect to get alluring deals and discounts on everyday expenses.
- Provide financial education: Several funds-saving apps also provide users with financial education and resources. This helps them to better understand their finances and make more informed decisions.
Therefore, the popularity of money-saving apps during economic crises can be attributed to the need for people to manage their finances effectively and find ways to save capital in challenging economic times.
The uncertain economic landscape has forced consumers to turn to f-saving applications to combat the following-
- High-interest rates
- Macroeconomic headwinds
- Rising inflation
These financial savings app help users to save monies on crucial goods and services. In the first quarter of the year 2023, global consumers spent an average of 5.5 hours per day on fintech apps. This information was revealed by data.ai. Other than money-saving apps, consumers seek the following mobile applications-
|Secondhand Marketplaces||Vinted||United Kingdom|
|Exclusive but affordable fashion||Shein||United States of America, United Kingdom|
|Budget-friendly travel||Fly Bonza||Australia|
|Hopper||USA & Singapore|
|Grocery, food deals & rewards||FairPrice, CoffeeBean SG||Singapore|
Disadvantages of using money-saving apps
A great disadvantage of using money-saving apps is that some of them may require you to provide your personal and financial information. This could potentially be a security risk. Additionally, some apps may require a fee or charge a commission when you use their services, which can offset any potential savings you may have gained. Lastly, some apps may not be fully compatible with all operating systems or devices, so you should check on the compatibility of the app before downloading or using it.
Final Words: Should You Use Money-Saving Apps?
This is the most anticipated query of the folks. Whether you should use money-saving apps or not? For that, first of all, you must consider all the advantages & disadvantages of such apps. Thereafter, you must do your own research and analysis of such apps. Ensure that your information and personal data are secured and safe. Review the app before using it. And with this, it’s wrap-up time. We hope that the given info is useful for you!