How Artificial Intelligence can help people with their personal finances

Artificial intelligence (AI) has transformed many aspects of modern life, from automating tasks to personalizing experiences. In the field of personal finance, AI has proven to be a powerful tool for helping people control their spending, offering practical, accessible and highly personalized solutions. With the ability to analyze large amounts of data, identify patterns and provide real-time insights, AI is helping individuals to better manage their money, reduce waste and achieve their financial goals. In this article, we'll explore how AI can be applied to spending control, its benefits, challenges and the impact it can have on everyday life.

1. Virtual Assistants with Integrated AI

AI-based virtual assistants, such as Grok (created by xAI), Google Assistant, Siri or Alexa, can be used directly to manage finances without the need for third-party applications. These tools, available on smartphones, computers or smart devices, offer functionalities that allow you to record, categorize and analyze expenses in a practical way.

How to Use

Voice Spending Log: Set up the assistant to write down expenses in real time. For example, by saying “Grok, write down that I spent R$50 on groceries”, the assistant can record the information in a connected list or spreadsheet (such as Google Sheets or Apple Notes). To do this, you need to configure the assistant to integrate with a data storage tool.

Financial summaries: Ask the assistant to summarize your weekly or monthly expenses. For example: “Grok, what did I spend on food this month?” Based on the data provided, the AI can calculate totals and identify patterns.

Personalized Alerts: Set up reminders to prevent overspending. For example, ask the assistant to alert you when spending in a category (such as leisure) exceeds a predefined limit.

Advantages

Using virtual assistants is free, accessible and doesn't require sharing data with third-party platforms, reducing privacy concerns. In addition, voice interaction makes the process intuitive, especially for those unfamiliar with technology.

Caution

The data recorded by the assistant needs to be stored locally or on trusted services (such as iCloud or Google Drive with secure authentication). It is essential to activate encryption and strong passwords to protect financial information.

2. Smart spreadsheets with AI

Spreadsheets such as Google Sheets or Microsoft Excel have built-in AI features that can be used to create personalized expense control systems. These tools allow you to automate calculations, categorize expenses and generate visual reports without relying on external applications.

How to Set Up

• Create an Expenses Spreadsheet: Create a spreadsheet with columns for date, description, category (food, transportation, etc.), amount and notes. Enter expenses manually or use a script to import data from bank statements (if available in CSV format).

• Use of Smart Formulas: In Google Sheets, for example, the “Explore” function uses AI to suggest graphs and analyses based on the data entered. Simply click on the “Explore” icon to view automatic summaries, such as “How much did I spend on transportation this month?”.

• Scripts with Google Apps Script: For users with basic programming knowledge, Google Apps Script (based on JavaScript) allows you to create automations, such as automatically categorizing spending based on keywords (e.g. “supermarket” becomes “food”) or sending email alerts when a spending limit is reached.

• Integration with Assistants: Connect the spreadsheet to the virtual assistant to enter data by voice or receive reports. For example, Google Assistant can interact with Google Sheets via simple commands.

Advantages

Spreadsheets are highly customizable, free and don't require sharing data with third parties. Integrated AI (such as the “Explore” function) simplifies analysis, even for beginners, while scripts offer advanced solutions for more experienced users.

Cautions

It is necessary to enter data manually, unless the user has access to digital extracts. In addition, initial configuration can be time-consuming, especially when creating automations.

3. Custom AI scripts

For those with basic programming skills, creating customized AI scripts is a powerful option. Open source tools, such as Python with libraries like Pandas and Scikit-learn, allow you to develop tailor-made financial control systems without relying on external platforms.

• Collect Data: Export bank statements in CSV format or enter expenses manually into a file. Use Python to process this data.

• Automatic Categorization: Train a simple machine learning model (such as a Naive Bayes classifier) to categorize expenses based on descriptions. For example, a transaction with “restaurant” can be automatically categorized as “food”.

• Analysis and Forecasting: Use libraries such as Pandas to calculate totals by category and Matplotlib to create graphs. Forecasting algorithms, such as linear regression, can estimate future spending based on historical data.

• Automation: Configure the script to send daily or weekly reports by email or WhatsApp, using libraries such as smtplib or pywhatkit.

Advantages

Customized scripts offer total control over data and functionalities at no extra cost. They are ideal for those who want a tailor-made solution and have the time to configure it.

Cautions

This approach requires technical knowledge and development time. In addition, data must be stored in secure locations, such as local devices or protected clouds.

4. AI Chatbots for Financial Education

AI assistants like Grok and ChatGPT can offer personalized financial guidance without the need for third-party applications. By interacting directly with the AI, users can learn how to manage spending and receive suggestions based on their needs.

How to Use

• Specific Questions: Ask the AI questions such as “Grok, how can I reduce my leisure spending?” or “What's the best way to create a monthly budget?”. The AI can suggest strategies, such as the 50/30/20 method (50% for needs, 30% for wants, 20% for savings).

• Simulations: Ask the AI to simulate financial scenarios. For example: “If I save R$200 a month, how much will I have in 5 years at 5% interest per year?”.

• Personalized tips: Give the AI information about your habits (e.g. “I spend R$500 a month on delivery”) to receive specific suggestions, such as cooking at home or subscribing to meal plans.

Advantages

This approach is free, accessible and does not require the sharing of sensitive data, since the user can only provide general information.

Cautions

AI responses depend on the quality of the questions. Users must be clear and specific to obtain useful guidance.

5. Challenges and considerations

Although these artificial intelligence solutions in personal finance avoid third-party applications, they require more user involvement, such as entering data manually or setting up automations. Privacy is an advantage, but data still needs to be protected with strong passwords and encryption. In addition, it is important to regularly review systems to ensure they are aligned with financial goals.

Artificial intelligence offers several ways to control spending without relying on third-party applications, using virtual assistants, smart spreadsheets, personalized scripts and AI chatbots. These solutions are accessible, customizable and protect privacy, allowing users to manage their finances autonomously. Although they require an initial effort to set up or enter data, the benefits include greater control, time savings and financial learning. With AI, anyone can turn spending management into a simple and effective process, achieving greater financial stability.