You have learned how to make a budget, track spending, build a safety net, avoid debt and shop smart. Now the question is: what tool will help you keep it all going? In this lesson of Mondosol’s Make Money course, Kofi compares the main types of budgeting tools, from a paper notebook to apps, so you can choose the one that fits you.
Read the article, watch the videos, or press play and listen.
In this article
Why a tool helps
A budget in your head is easy to forget. A tool does three jobs for you: it remembers your numbers, it adds up totals, and it reminds you to check in. The right tool is the one you will open every week.
Four types of budgeting tools
1. Paper notebook or planner
Simple, private and free. Writing by hand helps you remember. The downside: you have to do the maths yourself, and it is easy to leave at home.
2. Spreadsheet
Free tools like Google Sheets, or Excel and Numbers, let you build your own budget. Start with columns for category, planned, spent and difference. Formulas then do the maths. You control everything, but you type in each purchase.
3. Your bank app
Many bank apps can sort card payments into categories, show monthly spending charts, and let you create separate savings accounts or “pockets” with goals. Check what your own bank offers. It is often the easiest place to start, because the data is already there.
4. Budgeting apps
Dedicated budgeting apps can link to your accounts, sort spending and help you plan ahead. Some are free, some cost a monthly fee, and features change often. Read the section below on choosing safely before you sign up.
Quick comparison
| Tool | Cost | Effort | Good for |
|---|---|---|---|
| Notebook | Free | High | Beginners, cash, privacy |
| Spreadsheet | Usually free | Medium | People who like control |
| Bank app | Included | Low | A quick overview of card spending |
| Budgeting app | Free or paid | Low to medium | Planning ahead and goals |
The envelope method, on paper or in an app
The envelope method is an old idea that still works. At the start of the month you split your money into envelopes, one for each category, like food, transport and fun. When an envelope is empty, you stop spending in that category until next month.
You don’t need real cash to do it. Separate savings accounts or “pockets” in a bank app, or one row per category in a spreadsheet, work the same way.
How to choose an app safely
- Check who makes it and read the privacy policy. What data does it collect, and is it shared or sold?
- Check the real cost. Look for monthly fees after a free trial.
- Be careful with bank logins. Only connect your bank through the bank’s official, secure connection. Never share your password or BankID codes with anyone.
- Ask an adult if you are under 18 before connecting any account.
- Start small. Try one tool for a month before adding another.
Watch: build a simple budget sheet
Video: “Simple Budget Spreadsheet in Google Sheets” by Mr. Jamie Griffin, on YouTube.
Video: “How To Track Your Expenses (Google Sheets tutorial)” by Brian Turgeon, on YouTube.
Try it: Kofi’s tool test
- Pick one tool from the list above.
- Set up five categories and your planned amount for each.
- Use it every day for one week.
- At the end of the week, answer: Was it easy? Did I keep it up? What would I change?
- Keep it, or try a different tool next week.
FAQ
What is the best budgeting app?
There is no single best app. The best tool is the one you will actually use, is safe with your data and fits your budget. Many people do well with a simple spreadsheet or their bank app.
Is it safe to connect my bank to an app?
Only use apps that connect through your bank’s official, secure connection, never share passwords or BankID codes, and read the privacy policy first.
Do I need to pay for a budgeting tool?
No. A notebook, a free spreadsheet or your bank app is enough for most beginners.
What is the envelope method?
You split your money into categories at the start of the month and stop spending in a category when its “envelope” is empty.
Keep learning
- Practise it: open the interactive Make Money lessons in your learning journey.
- Previous lesson: Smart shopping.
- Next lesson: Module review: budgeting in 7 big ideas.
- Related: Tracking your spending and the 50/30/20 rule.
This article is educational and is not financial advice. Kofi is a character from Mondosol’s story cast. Example numbers are made up to show how the idea works.
