Digit is the sneakiest money saving app ever. I mean that in a good way.
If you haven't already heard of Digit, it is an app that links to your bank account and - after analyzing your spending habits - moves money into your savings when you can afford to. This allows you to painlessly save for the that investment piece you’ve been eyeing or a spring break trip. Oh, and it’s free!
It is as simple as it sounds. Signing up for Digit on the website is easy. It takes like five minutes (make sure to have your banking information). And then that's all you have to do. If you don’t have a savings account, Digit will even make a Digit savings account for you to hold all of the money you saved (which can then be transferred into your checking). After linking your bank account to Digit, the app then does all the work for you.
Whenever money is moved, Digit will send you a text message to notify you. This is actually my favorite part because sometimes the texts come with cute pictures or inspirational quotes.
Digit also uses texts to keep you informed, and to allow you to interact with your money. It will text you the balance of your checking account every few days, which is helpful if you want to avoid overdraft fees. After that, you can manage your Digit savings with text commands. If you are worried about security, fear not. Digit is FDIC insured and encrypts all of your information.
One major con to Digit is that it only works with banks located inside the United States, so keep that in mind.
The only other con to this is that it may take a while to see some significant savings. The app takes time to get a pattern of your spending habits. In the beginning, the savings feel minimal. A dollar here or there. Over time, as Digit familiarizes itself with your spending, these amounts will grow. This helps ensure that when Digit makes a transfer to your savings, it really is money that you won’t miss and won’t cause you to overdraw your checking account.
What do you think?
As a college student living on a budget, being able to have a savings account that I can fall back on is important to me. And sometimes saving doesn’t feel possible when every penny counts. But, Digit makes it easy to start saving money. And it makes the process fun and stress-free. That's why it's my favorite app this week.
What are some of the ways that you guys save money? Do you rely on apps like Digit and Mint? What other apps are you loving right now? Check back next time for my next featured app!