Creating Expense Types
INSIGHT
Just over 50% of surveyed target-users said they taught themselves how to budget, and over 85% of those users felt that they were doing it wrong. As we followed up with those users, we noticed a trend: they didn't know how to categorize their expenses.
OUR HYPOTHESIS
To simplify how users understand the budget, we broke out expenses into four types: income, bills, spending, and savings. We then suggest common categories that users can select from in order to subtly nudge them toward what they should include in their budget and expedite the category creation process.
RESULTS
About half of the users tested were confused where to put subscriptions, like Netflix or Amazon Prime. Some considered them as bills while others put them in the "Spending" expense type. Some didn't think they belonged in either group.
To solve this, we included a fifth "Subscriptions" expense type, placed after "Bills" and before "Spending". Tests with this solved the problem identified earlier.