Business programme
Start-Up, Scale-Up by Lloyds Bank Academy
Budget tools
Use tools and online support to make budgeting easier.
Introduction to 'Budget tools'
Setting a budget that works for you can be hard. Your needs, your income and your outgoings can all change with time. So, you need your money plan to flex with you.
Doing this manually can take time, especially when you have to keep your plan up to date with life's changes. This is where budget tools can help - to simplify and keep up with changes so you don't have to.
In this lesson we'll help you understand the benefits of different tools. Plus, we'll help you to search for tools and decide if they're right for you.
What you'll learn
- The budgeting tools and features on your banking app or website.
- Tools that can work out your budget for you.
- Other tools and where to find them.
How long it takes
8 minutes
Why use these tools?
Chapter 1
How long it takes
1 minute
The benefits of budgeting tools
With these tools, you can:
Keep things simple
These tools are made to be user-friendly. So you can build your budget and track your money more easily.
See everything in one place
You can track your income and expenses without having to juggle lots of bills, receipts and statements.
Stay on top of spending
Get updates and alerts when you spend, so you know exactly where your money goes, straight away.
Set and reach your money goals
Want to save for a holiday or pay off a debt? These tools can help you set your goals and keep you motivated.
See where you spend
Many of these tools have charts and visuals to show your spending habits. You can use these to help work out where to cut down.
Track and budget wherever you are
On your phone, tablet or computer - these tools travel with you. So you can budget at home or away, and check your spending on the move.
Each tool is different
In the rest of this lesson, we'll explore different types of budgeting tools. Each one has its own benefits. Some help you build a budget, while you can use others to keep track of your spending or reach your savings goals. Bear this in mind as you read through the next chapters. This will help you work out which ones are right for you.
Tools from your bank
Chapter 2
How long it takes
2 minutes
Online banking and banking apps
If you bank online, you're likely to have plenty of budgeting tools already. Banking apps and online banking sites have a range of features to help you keep on top of your finances. You'll find some of these on both the app and the online banking site. Others may just be on the app or the website. So, it's good to check what your bank has, and where.
What these tools do
These tools work together to help you see everything from your daily spending habits to long-term budgeting and saving goals. They do vary from bank to bank. We're including some of the most common features here.
Manage your regular payments
This feature lets you see payments you make regularly. You'll be able to see what you've spent so far, and when the next payment is due.
It helps you spot things like subscriptions that you don't use much or at all. Then you can use the tool to cancel those payments and start to save that money or use it on other things.
Spending insights
These help you track your spending habits. They may take the form of a ‘digital helper’ – a type of Artificial Intelligence (AI) tool. You can ask it questions and it will try to give a helpful reply.
For instance, you can ask:
- How much you spend in your favourite coffee place each month.
- Where you spent most of your money last December.
- Your travel costs so far this year.
As you get to know your spending habits, you'll be able to see where you might be able to save. Some of these tools can help with that, too.
Round ups
These tools help you save small amounts with very little effort on your part. They may be called 'Save the change' or 'Save the pennies'.
Each time you make a purchase with your debit card, the tool rounds up that spend to the nearest pound. It then moves the spare change automatically into your savings account or a separate 'pot'.
Spending alerts and caps
Most banking apps let you set notifications for transactions. This means each time your card is used to to pay for something, your app will let you know. This can help you pause your spend. It has security benefits too - if it's not you making that purchase, you can quickly let your bank know and freeze your card.
Some banks also let you set limits on spending in certain areas to help prevent overspending.
Other online tools
Chapter 3
How long it takes
4 minutes
Tools and where to find them
There are plenty of tools that can help with budgeting, as well as those from your bank.
Spreadsheets
Use software like Google Sheets and Microsoft Excel to list your income and outgoings. Their built-in functions work out what you have left over. Each time you change your income or outgoings, they'll re-calculate your new balance for that month.
Budget builder sites
These do the calculations and have ideas to help you save money. You can find these tools in the Citizens Advice and Money Helper websites. These government-approved, trusted sites have money management tips and advice, too.
Budgeting apps
Check out your device’s app store - look for a ‘money’ category to find some recommended and commonly used apps that may be able to help you budget. Examples here include Pocketsmith, Emma, Snoop and Actual Budget.
Many apps and tools (including those in your banking app) use something called Open Banking. This can help you see and manage your money from different accounts and services.
The Open Banking website explains what this is and how it works.
Tools that use Artificial Intelligence (AI)
Have you used any AI tools? Maybe you’ve used or heard of ChatGPT, Google Gemini or Microsoft Copilot.
People use these tools for many different things. This includes budgeting and planning how they’ll use, save and spend their money. Some of the banking apps we’ve mentioned include AI already. Others are starting to use it, to help people plan and manage their money.
How AI can help
AI can help you:
Understand complex topics
By simplifying these and explaining in a way that’s right for you.
Research options and tools
Tell it what you want to do or know – it will start to learn what you need.
Calculate or set your budget
So you don’t have to work out more complex calculations.
Learn budgeting techniques or idea
For example, how to save on your weekly food shop.
Using AI safely
AI tools can be useful. But they’re just another type of tool. And like any tool, you need to be aware of what they can and can’t do. These tools are growing and changing all the time. You can train them so they get to know what you mean and what you need from them.
Here's a few tips on what to look out for:
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This applies to any tool, app or website where you’re giving information. You’ll need to give these tools some guidance, for them to work for you. But remember, anything you type in could be accessed by others. So don’t include sensitive information that you want to keep private.
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It’s hard to imagine AI tools having an opinion. They exist to give us the facts, right? But there are people behind these tools. People who write the rules, questions and examples that teach AI. If these people have preferences or make assumptions – even without meaning to – those are built into the data that AI uses.
For example, say your AI tool is learning about pets. You’ve given it lots of photos, but most of these are of dogs. So the tool becomes very good at recognising dogs, but not so great at cats. And when someone asks it about the best pet to own, it may only suggest different types of dogs.
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Or incomplete. These tools gather data from lots of different places. If the data they learn from is wrong, their advice or suggestions are likely to be wrong, too.
Sometimes, it’s just the way they interpret the data.
Think of it like a Satnav. You ask for the quickest route and it may suggest roads that aren’t suitable for your van. You end up in a narrow lane with no easy way to turn around.
Always ask your AI tool where they found their information – that way, you can check it yourself. And be as specific as you can when you ask it questions. This helps it to understand exactly what you want.
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AI might feel like something that just happens on a screen. But it needs a lot of computers, working very hard. And these all use electricity to run. They also use water to keep cool. So the more we use AI, the more electricity and water it needs. That means it has an impact on our environment. Some people choose not to use AI because of this.
Finding the right one
Chapter 4
How long it takes
1 minute
How to pick a tool that works for you
In this lesson, we've shown examples of some of the many budgeting tools that are out there. But how do you pick one that you're likely to use, and meets your needs?
Ask yourself:
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Some apps will be free, some will cost. Ask yourself if they are worth the added cost.
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Do you want to share your financial information with them or connect them to your bank account? Look for a well-reviewed and trusted provider.
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Do you want to make the calculations easier, get ideas on how to cut down or something else?
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Some apps and websites work better on certain devices. Others only work on a particular type of device. Think about the device you’ll use for this.
Be aware
Be careful to select apps and software that are well reviewed, safe and trusted.
Check the reviews on your device’s app store. Ask the people you trust which ones they use and can recommend.
Want to learn more?
Budget
Bank and manage money online
Related lessons
Make payments online
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Tools and steps to help reduce your costs
Lloyds Bank Academy is committed to providing information in a way that is accessible and useful for our users. This information, however, is not in any way intended to amount to authority or advice on which reliance should be placed. You should seek professional advice as appropriate and required. Any sites, products or services named in this module are just examples of what's available. Lloyds Bank does not endorse the services they provide. The information in this module was last updated on 10th March 2026.