- In this report
- Overview
- Traditional software
- Online services
- What they do and don't do
Budgeting by computer
We tried several services that promise to help you manage your money
If you're determined to control your spending in light of today's economy, there are plenty of online budgeting and personal-finance services that might help. Along with well-known desktop products like Quicken, there are some new, free Web-based upstarts to help you budget, track your spending, and consolidate your financial data from banks, credit-card companies, and brokerages.
To use these newer services, you'll need to allow online access to your financial accounts. If that makes you uncomfortable (see Is your personal information secure?, you're probably better off using traditional software.
The CR Money Lab evaluated four free online services and three software packages that let you save and manage your data on your desktop. We focused on how well they tracked spending and budgeting. Several go beyond those basics to let you follow investments, pay bills, check your home's value, and shop for better credit-card terms. Some of their features are listed in What they do and don't do.
Is your personal information secure?
The sites we reviewed passed muster with Consumer Reports WebWatch, which checks online privacy and security policies.
Because the services use 128-bit encryption—the type legally required of banking institutions—your information gets the highest level of protection available as it travels between the server and your computer. You're in a secure site when the Web address includes "https" and the right-hand corner of the window displays a closed padlock icon.
What happens to your data on the server is another question. Check the company's security statements regarding how it treats such information. Most sites specifically mention that they're not liable for losses or damages resulting from security breaches, viruses, software corruption, or other events.
You might also ask customer service what would happen to your data if the service goes out of business. With so many new competitors, there's no telling which of them will last.
This article appeared in Consumer Reports Money Adviser.
