Students’ Perceptions of Budgeting Apps : Effectiveness compared to alternative methods

Abstract

This study examines university students’ perceptions and use of budgeting applications (apps) and assesses their effectiveness compared to traditional budgeting methods and the absence of budgeting practices. The aim of the study is to investigate how budgeting tools influence students’ financial outcomes, perceived financial control, and behavioral and planning improvements. A quantitative online questionnaire method was used, collecting 105 valid responses from students in Helsinki. The findings were analyzed using descriptive statistics and a chi-square test, and the analysis was guided by the Theory of Planned Behavior, Mental Accounting Theory, and the Technology Acceptance Model. The results show that budgeting apps are the most popular method, followed by traditional budgeting tools and no budgeting methods. Students who use budgeting apps reported better financial outcomes, greater perceived financial control, and stronger behavioral improvements than traditional method users and non-budgeters. Some students see budgeting as too restrictive, influencing their decision not to adopt structured budgeting. The study’s limitations include the use of convenience sampling, potential response bias from self-reported data, and the cross-sectional design, which prevents establishing causal relationships. Despite these limitations, the findings suggest that developing budgeting apps, improving financial literacy, and removing negative perceptions about budgeting could significantly enhance students’ financial outcomes and well-being. Future research can build on these findings to better support students’ financial management practices.