Mobile money management includes the ability to conduct online banking transactions, manage investment portfolios, track expenses, and analyze potential purchases. Separate mobile phone applications exist for smart phone users who wish to learn more efficient money management techniques. Online banking services typically provide mobile phone users access to mobile banking that lets them manage their accounts remotely. Mobile money management applications can include both interactive numerical and graphical tools that provide education and convenience.
Banking institutions may offer customers full or partial access to their account information through mobile banking services. This type of mobile money management allows customers to move money between accounts, make bill payments, monitor deposits and categorize payments. Mobile banking applications communicate directly with the account holder's phone to verify fund amounts and identification prior to authorizing the transaction. Some banks allow customers to make purchases with certain vendors through their mobile phone banking applications.
Those who choose to invest in the stock market, mutual funds or other openly traded investments may use an analytical mobile money management application. Investors are able to monitor aggregate market and individual investment trends. They may be able to schedule trades, including purchases and sell-offs. Remote monitoring of portfolio accounts, including graphical displays of returns and performance may also be available.
Expense tracking is another type of mobile money management. These applications may be geared toward a specific category, such as expenses related to a person's automobile or house. Other expense tracking applications are broader in nature, taking data inputs from a person's entire array of expenses. These programs may provide users with insight by generating graphs or charts that show them the areas where most of their expenditures are being made.
For example, as an individual enters in payments and places them into categories, a mobile money management application could show a trend graph for a three month, six month or annual period. By using this tool, a person can visually see the amount of money that is going towards travel, housing, auto expenses and food. Tools of this nature can help an individual determine if he is spending too much on one category. For instance, if a person discovers that he is spending 20 percent of his take home pay on restaurant food, he may want to start cutting back.
Some money management applications help individuals make purchasing decisions. For example, financial analysis tools may take inputs regarding the interest rate on a car loan, the proposed down payment and the number of payments. Tools like this can help people determine whether they can really afford a potential purchase or whether they need to wait and save more.
