Personal Finance AI apps… are they useful or harmful?

Someone holding up a phone that has a personal finance AI app open.

Since late last year, we have seen a huge influx of interest in AI across many industries. Artificial Intelligence or AI is a clever computer technology that can learn and understand things, just like how you do! It can solve problems, play games, and even talk to people. It uses special algorithms to think and make decisions, helping us with lots of cool and useful things in our everyday lives.

One area where AI is being used is in personal finance apps, which help us manage our money. But are these AI apps always helpful, or can they have some drawbacks? We’ll explore both sides of the coin in this post!

The good:
  1. Budgeting made easy: Personal finance AI apps can make managing your money easier than ever. They help you create budgets, track your expenses, and even give you reminders when you’re close to overspending. It’s like having a smart money manager right in your pocket!
  2. Smart financial adviser: These apps like Wally analyze your spending patterns and financial goals to offer personalized advice. They can suggest ways to save money, invest wisely, and even help you to plan for big expenses like buying a new tech or saving for university. With their smart recommendations, you can become money-savvy!
  3. Financial education: Some AI apps also provide educational resources to teach you about money. They offer interactive games, quizzes, and videos that make learning about finances fun and engaging. You can become a money master while having a good time.
The bad:
  1. Over-reliance on AI: While AI apps can be helpful, relying too much on them might make you less aware of your financial decisions. It’s important to understand the basics of money management (ex: budgeting, saving) without solely relying on an app. Remember, it is your money, and you should have a good grasp and plan of how to handle it!
  2. Data privacy concerns: Personal finance apps collect data about your spending habits and financial information to provide personalized recommendations. While most reputable apps take privacy seriously, it’s crucial to use trusted apps and ensure that they have proper security measures in place. Always talk to your parents to trusted adults about the apps you are planning on using and giving your personal, private information to. Make sure that you understand their privacy policies.
  3. Missing the human touch: AI apps can be efficient, but they lack the human touch. Money is not only about numbers, it is also about emotions and personal circumstances. Sometimes, you need support or advice from people like your parents or a financial advisor. So, don’t hesitate to seek guidance beyond the AI apps when needed.

Personal finance AI apps can be incredibly useful tools for managing money, providing budgets, and offering smart financial advice. They can help you become financially responsible and knowledgeable. However, it’s important to balance their benefits with a solid understanding of financial basics and privacy concerns.

Remember, AI apps are there to assist you. You should always stay in control of your money and seek guidance from trusted friends, family, and advisors when you need it. With the right balance, AI apps can be valuable companions on your journey to financial independence!

© FataFeat 2023