Which financial tool helps individuals budget their expenses?

Budgeting software or apps are specifically designed to assist individuals in managing their finances by tracking income and expenses. These tools often come equipped with features that allow users to categorize their expenditures, set spending limits for various categories, and visualize their financial habits through graphs and reports. By using this type of software or app, individuals can gain a clearer understanding of where their money goes each month, enabling them to make informed decisions about their spending and savings.

While credit scores, checking accounts, and secured credit cards all play significant roles in personal finance, they do not primarily serve the purpose of budgeting. Credit scores assess creditworthiness, checking accounts provide a place for transactions and storing money, and secured credit cards help build or rebuild credit history. In contrast, budgeting tools directly facilitate the process of planning and monitoring financial activities, proving to be invaluable for anyone looking to effectively manage their personal finances.