How to Use AI to Save Money and Budget Smarter

AI has seeped into countless aspects of our daily lives: It takes notes during meetings, gives us directions to appointments, and sums up our online search results. So, it’s no surprise that people are turning to AI for help managing their money.

A 2024 Experian report found that nearly half of consumers are considering using generative AI-powered tools to help manage their finances; 62 percent of millennials and 67 percent of Gen Zers say they’re already using AI for financial purposes. AI-savvy consumers are mostly using the technology to help with budgeting, improving their credit scores and investment planning, according to the report.
Keep reading to learn more about the benefits and drawbacks of AI tech for money management. We’ll also share a few reputable AI money tools along with tips for using large language models (LLMs) like ChatGPT to find ways to save.

Pros and Cons of Using AI to Manage Finances

The benefits of AI can be enticing: It can help identify spending trends, send automatic alerts when you’re overspending, and detect fraud. If you’re looking to educate yourself on financial topics, AI can help explain basic concepts and provide general information about budgeting and investing or share tips to help you reach a savings goal.

However, AI tools have their own share of problems and concerns. Among the downsides are data privacy risks, potentially misleading or incorrect financial advice, and AI’s inability to understand the nuance of your personal financial situation. While AI tools can provide general education on financial topics, most aren’t equipped to provide actionable tips specific to your circumstances.

AI Tools for Managing Your Money

If you’re interested in using the latest AI tech to save money or make smarter investments, look for reputable tools that are tailor-built for financial use. Before signing up for any service, check the fine print or terms and conditions to make sure you understand how it uses and stores your personal data.

Here are a few financial tools that use AI to help people budget, save, invest and more:

Rocket Money

This tool tracks subscriptions so you can cut out the ones you don’t need and save money. The premium version also provides a subscription cancellation assistant that cancels subscriptions for you, plus an automated savings plan to help you reach your goals. Rocket Money is available for free with premium plans starting at $6/month.

Origin

Origin is a wealth management tool that not only includes spending and budgeting tools but also lets you file your taxes within the platform. It comes with an AI sidekick that can offer advice on retirement planning and savings goals and help answer money questions. Origin offers a free seven-day trial before the $12.99/month subscription fee applies.

Cleo

Cleo targets a younger audience with a chatbot that uses a more casual tone while helping with budgeting, saving and improving your credit score. You can ask Cleo to comb through your transactions and answer questions like, “How much did I spend at restaurants last month?” The app also offers savings challenges to help you boost your savings buffer. Subscriptions cost $5.99/month, with occasional promotions available.

Danelfin

AI tools like Danelfin can help you compare stocks and adjust your investment strategy. Danelfin’s AI analyzes and rates stocks and ETFs to help investors make informed choices. You can also use it to monitor your portfolio and receive alerts if Danelfin’s AI score for your investment changes. Danelfin offers a free plan with 10 stock/ETF reports per month; premium plans start at $19/month.
 

Get Creative with Free AI Tools

When using services like ChatGPT, be careful with the information you share. Many LLMs store user data, so don’t ever share your bank account numbers or sensitive personal information. 

That said, generative AI tools can still be a source of financial education and inspiration. Here are a few creative ways to prompt free AI tools to help you save money, build a budget and more:

• Ask AI to create a weekly meal plan with healthy recipes and a shopping list that stays within a certain budget.
• Ask AI to assist with budget-conscious vacation planning by suggesting the most affordable times of year to travel or book flights, plus on-ground transit options, lodging and activities—or prompt it to brainstorm budget-friendly destinations.
• Ask for debt repayment scenarios to consider how you could approach your own debt balance.
• Learn about a new financial topic by asking your preferred AI tool to round up free, reputable resources on investing, retirement, or other topics.
• Ask AI to create a personalized budget based on factors including your income, expenses, and goals, such as saving toward a splurge or paying down debt.
• Use AI to come up with ideas to save money before your next major shopping trip. A simple question like, “How can I save on kids’ clothing?” or “When is the best time to buy a new washing machine?” may yield opportunities to save.

AI Money Tools Offer Opportunities—and Risks

When it comes to analyzing your spending habits, cutting costs, and building a budget, AI tools can be a powerful ally. However, data privacy and information accuracy are still reasons to be wary of AI when your money is involved.

Always do your homework to make sure any financial guidance you receive from AI is sound and accurate. When in doubt, work with a trusted financial professional to help you build a strategy that aligns with your goals.