The best free and cheap tools to help you stay in control of your finances

Are you struggling to stay on top of your finances? If you want to start saving more money, manage your budget better, or improve your financial literacy, you’re in the right place.

Below, I’ll share some of the most underrated Canadian tools and resources for financial help. The best part is that many of them are free or cost very little!

Budgeting and expense-tracking tools

Consumer credit card debt is at a record high, according to the latest reports from Statistics Canada, which means that it’s more important than ever to practice proper financial management.

In the past, budgeting meant spending the better part of a day with a calculator and notepad, reviewing all your paper bills and bank statements. Today, you can use free online tools to create a detailed budget in less than an hour.

Here are some of my top picks for free budgeting and expense-tracking tools.

Mint

Owned by Intuit (the group behind TurboTax), Mint is easily one of the best free budgeting tools available to Canadians. The platform also offers a low-cost paid membership, but most of the key features are 100% free.

Once you create an account, you can quickly and securely link all of your bank and credit card accounts. Mint will track all of your spending and categorize expenses into built-in categories, such as:

• Groceries
• Fuel
• Utility bills

You can also program your own expense categories, so Mint will properly categorize your future spending. My favourite feature is that Mint offers easy-to-understand graphics that help you better understand your budget and finances.

YNAB – You Need A Budget

You Need A Budget is an alternative budgeting software that guides you through managing your expenditures and budget. In contrast to apps like Mint that simply monitor your spending, YNAB emphasizes a strategy-first, follow-through methodology.

The four guiding principles of YNAB budgeting are:

• Assign a purpose to each dollar
• Recognize and accept your real costs
• Be adaptable to changes
• Let your money mature

YNAB helps you harmonize your revenue and expenses, offering helpful notifications to ensure your expenses are paid on time.

YNAB’s success lies in its expense classification. Users can distribute their money more efficiently when they can discern between immediate and genuine expenses.

The app is paid but offers a free 30-day trial period so users can see if it’s right for them.

PocketGuard

PocketGuard is a free budgeting and expense-tracking app that keeps track of your income and expenses with a simple pie chart, so you can get an overview of your finances at a glance. Its user interface is similar to Mint and is very user-friendly.

PocketGuard offers notifications to help you pay your bills on time and free tips on negotiating your bills and subscriptions down.

While the free version should be sufficient for most users, you can upgrade to the low-cost Pro subscription to access more features and advanced customization.

How to use these tools effectively

Budgeting and expense management tools are only as effective as the data that you provide. To get the most out of these tools, you should link all of your credit cards and bank accounts. You should also review the expenses to ensure the app properly categorizes them.

Credit and debt management

Managing your personal and credit card debt is important if you want to maintain (or improve) your credit score and avoid high-interest rates and late fees. Here are some great tools and resources to help you along the way.

Credit counselling services

If you’re in over your head and unsure of how to get your credit card debt under control, I recommend using a professional credit counselling service. Trained professionals can help you create a plan to regain control of your debt with various tactics, including:

• Debt consolidation loans
• Payment plans
• Balance transfers

Each case is different, and credit counsellors will help you create the best strategy that fits your unique needs. They may also be able to help remove negative items from your credit, which can improve your score and creditworthiness.

Built-in credit card tools

Many credit card companies offer built-in tools you can access online or through the credit card app. Some of the most common tools are:

• Budget/expense tracking
• Payment notifications
• Subscription and bill negotiation
• Automated payments
• Free credit score

These are typically available for free, so you should take advantage of them.

Credit Karma

Credit Karma lets users see their FICO credit scores and obtain free copies of their detailed credit reports. It also offers credit monitoring so that you can stay on top of any changes to your score or report.

Based on your credit scores, Credit Karma can also connect you with pre-approved offers for credit cards, auto loans, insurance policies, and more, so you can save time and get the best rates.

Borrowell

Borrowell is very similar to Credit Karma and offers free credit monitoring, scores, and reports. Based on your information, Borrowell can also pair you with pre-approved offers for credit cards, personal loans, and more.

The platform also offers a low-cost credit-building feature, which can help you improve your score by offering a subscription that appears as a small personal loan on your credit report.

How to use these resources effectively

Credit monitoring apps give you an updated overview of your credit score and report, so you can see what’s helping (and hurting) your score.

To get the best out of these apps, make a habit of checking your scores regularly. Create an action plan to avoid past mistakes and build on your good habits to help improve your score.

McGill Personal Finance Essentials course (free!)

Lastly, check out McGill’s free Personal Finance Essentials course. This course is open to everyone, regardless of age, and is available in English and French. It’s taught by real professors from McGill University’s Desautels Faculty of Management.

This course will help you improve your financial literacy and teach you essentials such as:

• Budgeting
• Debt management
• Investing
• Retirement planning
• Real estate investing
• Behavioural Finance

This course is a great learning opportunity, whether you’re still in school or you’re already making your way into the “real” world.

Financial literacy is freedom

The path to financial freedom and stability starts with learning financial literacy. Start by creating a budget, managing your income and expenses, and learning key concepts. From there, you can learn about investing, retirement plans, real estate, and more!

Most of this information is available for free online. By combining self-education with some of the tools and resources I mentioned above, you’ll set yourself on a positive path to achieving your financial goals.

Written for Daily Hive by Christopher Liew, a CFA Charterholder, former financial advisor, and the creator of Wealth Awesome.