Cleo Budgeting App Review: Can AI Make Money Management Fun?

When I hear the word “budgeting,” I don’t usually think of the word “fun.” While I’ve enjoyed testing popular tools like YNAB and EveryDollar, most budget apps make me feel like I’m 16 years old listening to my parents lecture me about the dangers of overspending.

However, Cleo is an exception to the norm. The app makes managing your money feel more like a game with spending and saving challenges, and the cheeky AI chatbot can even make you laugh. For example, it invited me to “de-fuck” my finances – a phrase that certainly never came out of my parents’ mouths.

Read on to learn more about Cleo and whether it’s worth adding to your phone.

Cleo

Like

• Brutal AI chatbot
• Savings challenges
• Free basic budgeting features

Don’t like

• AI does not mean ‘hands-off’
• Cash advances can be too tempting
• Paid features may not be worth it

How does Cleo work?

Cleo is similar to most budget apps when it comes to the basics of money management. You share your banking information through a secure third-party service like Plaid, and your transaction history is automatically populated in the app’s “Spending” tab.

You will receive a monthly overview in four categories: what you have to pay, what you have saved, what you have spent and a general limit.

For me, the most useful information came from the “Overview” section, which showed my credit card spending by merchant. I knew I went to Target a lot, but I wasn’t quite prepared to hear that I spent more than $4,389 there last year.

What sets Cleo apart is its ‘Ask Cleo’ tab, which lets you talk to an AI chatbot about your money. For example, I asked if I could afford to spend $500 on a gift, and after a quick analysis of the money in my accounts, the chatbot told me, “Go for it, friend.” The bot also invites you to take a quiz to see how well you understand your finances.

The app is nice, but not perfect. For example, some one-time purchases were incorrectly assumed to be recurring bills.

Cleo has a free version, which gives you basic budgeting features, as well as three paid subscription levels:

• Cleo Grow ($2.99 ​​per month) offers savings challenges and access to Cleo’s high-yield savings account.
• Cleo Plus ($5.99 per month) This allows you to request cash advances of up to $250.
• Cleo Builder ($14.99 per month) you can requestcash advances up to $500 and add a secured credit card to your wallet.

What I liked

• Artificial intelligence encourages real responsibility: Finances can be a tricky subject, and having someone (or something) to hold you accountable can help you stay on track. Cleo’s AI can act as that accountability partner without the discomfort that can come with normal money discussions.
• Challenges can keep you motivated: Cleo automatically checks your transaction history to determine where you should spend less. For example, the app recommended that I limit my target spend to €158 over the next fortnight, for an estimated savings of €40. Cleo provided updates and encouragement throughout the challenge to encourage me to stick with it.
• Free features: You can automatically sync your bank accounts and get a basic understanding of your cash flow without paying anything for the app. However, the functionality is limited. For example, you can’t use the challenge feature without upgrading to a paid tier. But the free version is still a valuable way to see if you like the app before signing up for a subscription.

What I didn’t like

• AI doesn’t mean you have to use your money on autopilot: I believe AI can help solve some people’s money problems, but not everything. While I was genuinely impressed with Cleo’s AI chatbot, the app’s automated understanding of my invoices was far from perfect. And overspending is a human problem, so you have to put some of your own energy into making budgeting a success.
• Cash advances are not a long-term solution: Cleo offers interest-free cash advances between $250 and $500. These may be attractive if you’re struggling to make ends meet, but they won’t help you avoid the need for extra money in the future. A cash advance should be a one-time necessity and not a regular solution.
• Paid features may not be worth it: In addition to cash advances, key benefits of Cleo’s paid tiers include access to a secured credit card and savings account. With many free bank accounts and secured credit cards, this isn’t all that unique. And while Cleo’s savings account has a respectable 3.52% annual interest rate, or APY, some of the best high-yield savings accounts pay as much as 5% APY.

Is Cleo safe?

Yes. Cleo uses 256-bit encryption to protect your data. It also uses Plaid to sync with your bank accounts and never stores your banking information. Plus, the company doesn’t sell your information, which means you never have to worry about your financial information getting into the hands of another company trying to sell you additional products or services.

Who is Cleo best suited for?

If you’re bored with the usual budgeting apps or need help sticking to your spending goals, Cleo might be for you. The fun AI chatbot and custom savings challenges can make budgeting more fun and motivate you to be smarter with your money.

The app’s features also seem tailored to people who haven’t had a great experience with the traditional banking industry. For example, if you’ve been dealing with overdrafts or need help increasing your credit, Cleo’s Builder level offers cash advances and a secured credit card.

Alternatives to the Cleo app

There are plenty of other budgeting apps worth considering if Cleo isn’t right for you. Rocket Money, for example, has plenty of features and an easy-to-use interface, free or just $6 per month.

If you’re attracted to Cleo’s cash advances and savings account, you might enjoy Chime. More of a banking app than a budgeting app, Chime offers a secured credit card, checking account, and high-yield savings account – without requiring you to pay monthly fees. Additionally, the MyPay tool allows you to get early access to up to $500 of your paycheck for free. (Unless you need the money immediately, in which case there is a $2 fee).

Frequently asked questions

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