How to use AI for budgeting, saving, and managing your money

Budgeting and looking for ways to trim expenses can feel like a chore, but using tools with artificial intelligence (AI) can make managing your money a little easier and help you make smarter decisions. Whether you’re trying to build a nest egg or just spend more wisely, these tools might help you track spending, create a budget, and uncover new ways to save. And you don’t have to be tech-savvy to use them.

How AI can help you save money

One of the simplest ways to use artificial intelligence to improve your finances is by turning to a general-purpose AI assistant. Tools such as ChatGPT, Pi, Bard, Jasper, and Perplexity can all answer questions about saving money, whether you’re looking for local stores with sales or creating a shopping list for your weekly meal plan. These tools respond to your prompts and generate suggestions in real time.

For example, you might ask an AI assistant to create a shopping list of low-cost items for a five-day meal plan for a family of four that costs less than $6 a serving. If you have dietary restrictions or food preferences, you can include those in your prompt.

You can also ask an AI assistant for money-saving tips based on your current goals and spending. For example, you might input your regular bills and ask for suggestions on how to reduce costs. Then, you can prompt the assistant to compare options for where to stash those savings, like a high-yield savings account.

Some tools are created with finances in mind. Although general-purpose AI assistants can respond to all kinds of prompts, apps like Cleo or Trim bake AI directly into features built specifically for personal finance.

Using AI to build a personal budget

Just as you can use prompts to get saving advice, you can also enter a series of instructions to have an AI assistant help you build a personalized budget.

• Start with your income. Enter your monthly after-tax income, and include how often you’re paid. For example, “I receive $2,000 every other week.”
• List your expenses. List your regular expenses, such as utilities, insurance, rent or mortgage, car payments, and groceries. If you know the amounts, include them. Including due dates for major expenses can help the assistant understand your cash flow.
• Share your financial goals. Identify what you want to work toward, such as increasing retirement contributions, building an emergency fund, or saving for a vacation next year. Inputting your goals helps the assistant generate more relevant suggestions.
• Ask the assistant to create a plan. Once you’ve entered your income, expenses, and goals, prompt the AI to generate a budget that fits your situation. It might recommend trimming discretionary spending, such as canceling a streaming service and redirecting that money into an emergency fund. Or it might suggest gradually increasing the percentage of your pay going into a  401(k) or individual retirement account (IRA) to build your long-term savings.

You may need to refine your prompts or review the responses more than once. AI tools aren’t truly intelligent; they don’t think like humans do. Instead, they use machine learning to analyze patterns in data and generate suggestions. It might take a few tries to get useful results, and it’s important to double-check them for accuracy.

AI budgeting apps that simplify your finances

Another way to bring AI into your financial routine is by using budgeting apps that have AI built in. These tools handle the prompts for you, automating tasks such as expense tracking, budgeting, and saving. Examples include Albert, Cleo, Origin, and Trim.

Each app uses AI slightly differently to analyze your finances and offer recommendations. Some even take action for you. For instance, the paid version of Trim can scan your recurring bills and negotiate lower rates on your behalf.

Cleo offers a free version that tracks your spending and provides real-time feedback on your habits. You can then ask for suggestions on how to cut costs and where to reroute the savings, perhaps into debt payments or a certificate of deposit (CD) that earns a competitive interest rate.

Apps like Albert and Origin, available only through paid plans, often include more robust features. Albert highlights where you’ve already saved money and helps you transfer those savings into another account. It also flags unused subscriptions draining your funds. Origin goes beyond budgeting, using AI to assist with tax planning, estate planning, and investment guidance.

Smart ways to use AI for budgeting and saving

A few thoughtful practices can go a long way when using AI tools to manage your money:

• Review and verify advice. AI assistants can generate useful suggestions, but they may also produce inaccurate or outdated information. Always double-check financial tips before acting on them.
• Use clear, targeted prompts. The quality of AI-generated results often depends on what you input. Ask specific questions and include details about your financial goals or limitations to get more useful responses.
• Provide relevant details. Including information such as your income, recurring bills, and savings goals can help AI generate suggestions that better fit your situation.
• Track and revisit your plan. Your budget isn’t set in stone. AI tools can help you review and adapt your plan over time so it stays in tune with your needs and values.

The bottom line

AI tools can help you build a budget, find ways to save, and make more informed financial decisions. Although they aren’t perfect, they can provide a practical starting point, especially if you’re looking for support without a financial background.

As you learn more, you can build on those insights through your own research or, if needed, consult a financial advisor for personalized guidance. But even a few small steps with the help of AI can give you more clarity and control over your finances.