David McMillin writes about credit cards, mortgages, banking, taxes and travel. Based in Chicago, he writes with one objective in mind: Help readers figure out how to save more and stress less. He is also a musician, which means he has spent a lot of time worrying about money. He applies the lessons he's learned from that financial balancing act to offer practical advice for personal spending decisions.
When I hear the word "budgeting," I don't typically think of the word "fun." While I've enjoyed test-driving popular tools such as YNAB and EveryDollar, most budgeting apps make me feel like I'm 16 years old and listening to my parents lecture me on the dangers of overspending.
Cleo, however, is an exception to the norm. The app makes managing your money feel more like a game with spending and saving challenges, and its sassy AI chatbot might actually make you smile. For example, it invited me to "unfuck" my finances" -- a phrase that has definitely never emerged from my parents' mouths.
Read on to learn more about Cleo and whether it's worth adding to your phone.
Cleo feels similar to most budgeting apps when it comes to the basics of money management. You share your banking details via a secure third-party service, such as Plaid, and your transaction history automatically populates in the app's "Spend" tab.
You'll get a monthly breakdown in four categories: What's due, what you've saved, what you've spent and an overall limit.
For me, the most useful information came from the "Overview" section, which showed me my credit card spending by merchant. I knew I went to Target a lot, but I wasn't quite prepared to learn that last year, I spent more than $4,389 there.
What sets Cleo apart is the "Ask Cleo" tab, which allows you to talk with an AI chatbot about your money. For example, I asked if I could afford to spend $500 on a gift, and after a quick analysis of the cash in my accounts, the chatbot told me, "Go for it, pal." The bot also invites you to take a quiz to see how well you understand your finances.
The app is fun, but it's not perfect. For example, it incorrectly assumed some one-time purchases were recurring bills.
Cleo has a free version, which gives you basic budgeting features, as well as three paid subscription tiers:
Yes. Cleo uses 256-bit encryption to protect your information. It also uses Plaid to sync with your bank accounts and never stores any of your banking details. In addition, the company doesn't sell your data, which means you never have to worry that your financial information will wind up in the hands of some other company trying to sell you additional products or services.
If you're bored by the usual budgeting apps or need help sticking to your spending goals, Cleo could be for you. Its fun AI chatbot and custom savings challenges can make budgeting more enjoyable and motivate you to be smarter with your money.
The app's features also feel tailored to people who haven't had a great experience with the traditional banking industry. For example, if you've struggled with overdraft fees or need help boosting your credit, Cleo's Builder tier offers cash advances and a secured credit card.
There are plenty of other budgeting apps worth considering if Cleo isn't right for you. For example, Rocket Money has plenty of features and an easy-to-use interface for free or as little as $6 a month.
If you're attracted to Cleo's cash advances and savings account, you might enjoy Chime. Chime is a banking app rather than a budgeting app, but it offers a secured credit card, a checking account and a high-yield savings account -- without the need to pay monthly fees. Plus, its MyPay tool allows you to access up to $500 of your paycheck early, free of charge. (Unless you need the cash immediately, in which case there's a $2 fee).
