Facts About Mobile Banking and Budgeting

Introduction

According to Mobile Money Report (2018),61% of people in the US in possession of a smartphone was found to engage in a banking activity through their mobile phones and these statistics are very important because the same research shows that more than a third of the mobile bankers strongly concur that budgeting apps are a necessity for tracking their spending ("Mobile Money Report - MEF"). The popularity of budgeting apps can be, specifically be shown by a record-breaking over one million subscriptions to Every Dollar app in just 10 months of release in 2016.

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The Concept Behind EveryDollar App.

The architect of the app, Davis Ramsey, believes that biggest wealth-building tool is income and the only way to harness its powers is by maintaining an effective monthly budget that uses a zero-based budget concept. The working principle of this concept is that, by ensuring every dollar is given a use, there is a higher chance of making it work for an individual in getting out of debts and growing wealth ("A Zero-Based Budget: What And Why"). The efficiency of this concept is supported by survey findings showing people using the concept are likely to settle 19% more debt and save extra 18% compared to those who do not ("Financial Peace University" N.p)

Terminologies and Definitions

The main terminologies use for Every Dollar App are:

• Planned amount - this essentially refers to income the user expects at the end of the month.
• Left to budget - the amount left after assigning budget item planned amount
• Baby steps - 7 Ramsey's guides to getting out of debt and building wealth, which include an emergency fund, pay off all debts, savings of expenses, retirement savings, college fund, house pay off, and build wealth.

How EveryDollar App Works

The app has a very simple and an interactive user interface. The first step is to enter the planned amount. The second step involves preparing a list of expenses or budget items and then assigning them the planned amount until the "left to budget "section of the app shows zero. This shows that every dollar has been assigned use and no overspending is allowed. The last step is track expenditure by updating both income and spending transactions.

Interesting Features

The app is designed to sync all the user's devices hence always up to date with your money, additionally with the paid version of the app, EveryDollar Plus, automatically syncing with bank account balances to keep the income updated. Another exciting feature of the EveryDollar is that it allows the user to create a list transaction with capabilities of drag and drop into app's home.

Work Cited with a Sentence Description

"Budgeting Becoming Popular Thanks to Apps". USA TODAY, 2018, https://www.usatoday.com/story/money/2015/04/27/budgeting-apps-affect-spending-habits/26190991/. Accessed 16 Mar 2018.

It is an online newspaper article reporting on surveys and user's opinions about money budgeting apps and how these apps have changed their spending habits.

"Financial Peace University". Daveramsey.Com, 2018, https://www.daveramsey.com/fpu/beta#in-progress=1. Accessed 16 Mar 2018.

This is an article authored by the founder of the EveryDollar App with market hard survey facts about the importance of using money budgeting apps.

"Mobile Money Report - MEF". MEF, 2018, https://mobileecosystemforum.com/mobile-money-report/. Accessed 16 Mar 2018.

This a market survey report regarding the number of mobile users engaging in mobile banking and paying services as well as the consumer trends.

"MORE THAN 1 MILLION USERS BUDGET WITH EVERYDOLLAR". Daveramsey.Com, 2018, https://www.daveramsey.com/pr/more-than-1-million-users-budget-with-everydollar. Accessed 16 Mar 2018

The article shows the statistics of the EveryDollar since the release in 2016.