How Money Management & Savings Apps Are Improving Financial Education

Money saving tips for families

While tips on how to save and manage one’s finances are good, without the tools necessary for people to put these tips into practice, they will continue to struggle. 

Despite all the hundreds of blogs providing money saving tips, many people across the globe still find it difficult to save either for emergencies or retirement, leaving everyone asking why saving money is so hard.  

About 68% of Americans say they are unable to meet their living expenses for just one month if they lost their jobs, according to a Bank Rate Survey. In the UAE, 45% of residents have not started saving towards retirement, according to a study conducted by Friends Provident International (FPI), an insurance company. 

While some of these low savings can be attributed to poor economic conditions, personal finance experts agree that poor financial management is a big chunk of the problem. Overspending, high debt burden, lack of financial literacy, increase in non-essential spending are some of the culprits according to experts interviewed by Khaleej Times, a digital newspaper in the UAE. 

Instead of just repeating saving and personal finance management tips, UAE-based savings apps like Maly are providing consumers with the tools they need to save more and better manage their finances. 

Automated savings

Instead of expecting people to develop the discipline to save, why not provide a tool that automates their savings such that they are compelled to live within their means?

Maly, in line with George Clason and Warren Buffett’s advice that people save before spending, has provided its users with an opportunity to immediately deduct their savings from their income. 

If a user’s salary enters their account on the last working day of every month, they can give permission to Maly to automatically deduct a particular amount from their income on that very day. 

In this way, they are “compelled” to live within their means until the next payday. It is in this situation that they will find those myriads of money saving tips valuabl e since they have no choice than to live within their means. 

Also, instead of mustering up the discipline to save every time they get paid, they only need to exercise the discipline once – when they set up the automatic savings. 

Save as you spend

If saving before spending is cool, what about saving while spending? 

With this tool, users of Maly can round up their purchases to the nearest 1, 5, or 10 dirham with the extra amounts added to their Maly savings card. So, for example, if a user spends AED 105 in a grocery score, they can choose to round it up to AED 110 with the extra AED 5 added to their savings card. 

At the end of the year, all these drops of water would have turned to an ocean. Again, tools are important. 

Spending management

Spending within one’s means is one of those things that is easier said than done. 

But like saving money, what if the right tools can make it simpler? 

Consider what Maly does: 

Maly users can create multiple prepaid debit cards for each of their expense categories and load these cards with certain amounts. 

More interestingly, they can set spending limits on each card. This ensures that their spending on a category does not exceed the budgeted amount.

Learning by doing

One can read loads of money management articles and books and still not practise what is being taught. But what if there is a way to learn by doing? 

This is one of the advantages that fintechs like Maly provide. Yes, there is financial education through the blog but for every personal finance tip, there are tools to put them into practice. And users will gain more practical financial knowledge with each tool used. 

Maly even highlighted 5 different savings plan challenges that users can explore to improve their savings and money management skills. What makes this beneficial is that you can start each saving challenge on the app.  

Financial inclusion

The democratisation of personal finance is another advantage of products like Maly. Everyone, irrespective of their financial capabilities, can use the platform to gain a mastery of their finances and achieve their financial goals. 

There is no minimum amount that must be saved nor is there a minimum amount of income needed to qualify. All and sundry can journey to financial freedom. 

Money management and savings apps like Maly are proof that showing people how to do what they should do and providing them the tools or products they need to do them is a more effective strategy that can bridge the gap between knowledge and practice. 

By providing these products, they are helping improve financial education and inclusion and putting people on the path to achieving their financial goals. 

Interesting Related Article: “Tips For Getting Your Personal Finances in Order