Best financial apps for young adults

For young folks in the digital age, financial management skills are just as important as a degree. The quick development of financial technology, or “fintech,” has made handling personal accounts simpler than ever. With a focus on the particular requirements of the younger generation, the abundance of creative financial applications provides a variety of solutions, ranging from investing and payment processing to budgeting and saving. In order to help young individuals properly manage their financial journeys and make sure they stay on track to meet their personal and professional goals, this article explores some of the top financial applications.

Best Budgeting Apps for Young Adults

You Need a Budget (YNAB)

For those who find themselves often grappling with managing their finances, especially with variable income or significant expenses like student loans, You Need a Budget (YNAB) offers a robust solution. This app doesn’t just track where your money goes; it teaches you to proactively manage your finances. YNAB encourages users to “give every pound a job,” promoting a method where every income piece is allocated to specific expenses and savings, reducing the risk of overspending.

Key Features of YNAB:

• Real-time access to budgeting while on the go.
• Goal tracking that keeps you motivated and on track.
• Reports that show spending trends and help you adjust your budget as needed.

Goodbudget

Goodbudget takes a more traditional approach by digitalising the envelope system of budgeting. This method involves dividing your money into categories (‘envelopes’), each designated for different spending purposes. Once an envelope is empty, you must wait until the next refill—effectively preventing overspending.

Why Goodbudget?

• It’s ideal for couples or families who want to manage their budgets together.
• It provides a clear visual representation of where money is going, which helps in sticking to a budget.
• Users can sync and share budgets across multiple devices.

Best Savings Apps for Young Adults

Acorns

For young adults interested in growing their wealth while they spend, Acorns is an exemplary tool. This app rounds up each purchase to the nearest pound and invests the difference into diversified portfolios. It’s an effortless way to build savings over time, suitable for those who might otherwise struggle to set money aside.

How Acorns Supports Your Savings Goals:

• Micro-investments made simple with round-ups from everyday purchases.
• Automated investment into diversified portfolios to help grow your wealth.
• Educational content to bolster your investing knowledge.

Digit

If saving money feels like a chore, Digit automates it for you. By analysing your spending habits, Digit calculates affordable amounts to set aside each day into a savings account. It’s discreet, effortless, and effective, making it ideal for setting aside money for emergencies or short-term goals without having to think about it.

Benefits of Using Digit:

• Uses a sophisticated algorithm to determine how much you can save regularly.
• Automates savings, making it seamless and easy.
• Allows for specific savings goals, helping you prepare for future expenses.

Best Credit Management Apps

Credit Karma

Maintaining a good credit score is pivotal for future financial dealings, such as securing loans with favourable terms. Credit Karma provides young adults with free access to their credit scores and reports, along with insights on how to improve them. Regular monitoring can help you understand the factors influencing your credit score and guide you towards better credit management decisions.

Credit Karma Highlights:

• Continuous access to your credit score and report at no cost.
• Tips and recommendations on how to improve your credit score.
• Alerts for any significant changes to your credit file, helping you stay informed of potential fraud.

Best Investment Apps for Young Adults

Acorns (Revisited)

Revisiting Acorns, its appeal stretches beyond just spare change savings. This app is a starting point for many young investors. With its simple yet effective investment model, it serves as an educational tool, exposing users to the stock market without the overwhelming need to understand complex investment details. Acorns suit those who are not only interested in saving but also in making their money work for them over the long term.

Investment Learning with Acorns:

• Pre-configured portfolios that diversify your investments automatically.
• Potential for higher returns over the long term through consistent, small investments.
• Educational resources that help demystify the stock market.

Fidelity Youth

For teenagers and young adults ready to dive deeper into the world of investments, Fidelity Youth offers a robust platform. This app provides real-world investing experience without commission fees, making it accessible and financially feasible for young investors to buy stocks, ETFs, and Fidelity mutual funds. It’s an educational gateway that not only teaches about investments but also instils financial discipline from a young age.

Advantages of Fidelity Youth:

• Real stock trading with no commissions, lowering the barrier to entry for young investors.
• Educational resources tailored to young users, enhancing their understanding of financial markets.
• A debit card associated with the account, helping manage daily spending with an eye towards saving and investing.

Best Payment and Money Management Apps

PayPal and Venmo

In a world where digital transactions are king, PayPal and Venmo stand out as essential tools for young adults. PayPal facilitates secure online purchases and money transfers globally, while Venmo adds a social twist to money management, allowing friends to split bills, share expenses, and even send money gifts with ease. Both apps are staples in the modern young adult’s financial toolkit, blending security with convenience.

Why Use PayPal and Venmo?

• Wide acceptance online and increasingly in physical stores.
• Social features on Venmo make splitting expenses simple and fun.
• Strong security measures protect your financial information.

Rakuten

Rakuten offers a dual benefit as a money management tool: it provides cash back on purchases and acts as a gateway to numerous online deals and discounts. For young adults looking to extend their budget while shopping online, Rakuten is a tool that pays to use — literally. It transforms every purchase into an opportunity to save, turning everyday shopping into a more rewarding experience.

Getting the Most Out of Rakuten:

• Earn cash back on regular purchases from groceries to electronics.
• Automatic coupons and price comparisons ensure you get the best deal.
• Payments made quarterly, providing a nice bonus that can go back into savings or expenses.

Conclusion

Embracing financial apps is akin to investing in a personal financial advisor who’s on call 24/7. Whether it’s budgeting, saving, investing, or making payments, these tools offer young adults the autonomy to manage their finances with sophistication and ease. As you integrate these apps into your daily life, they not only facilitate wise financial decisions but also foster a deeper understanding of economic principles — empowering you to take charge of your financial future confidently. By choosing the right apps, you ensure that your journey towards financial independence is not just successful, but also well-informed.

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