When I hear the word "budgeting," I don't typically think of the word "fun." While I've enjoyed test-driving popular tools such as YNAB and EveryDollar, most budgeting apps make me feel like I'm 16 years old and listening to my parents lecture me on the dangers of overspending.
Cleo, however, is an exception to the norm. The app makes managing your money feel more like a game with spending and saving challenges, and its sassy AI chatbot might actually make you smile. For example, it invited me to "unfuck" my finances" -- a phrase that has definitely never emerged from my parents' mouths.
Read on to learn more about Cleo and whether it's worth adding to your phone.
Cleo
Like
- Sassy AI chatbot
- Savings challenges
- Free basic budgeting features
Don't like
- AI doesn't mean "hands-off"
- Cash advances may be too tempting
- Paid features may not be worth it
How does Cleo work?
Cleo feels similar to most budgeting apps when it comes to the basics of money management. You share your banking details via a secure third-party service, such as Plaid, and your transaction history automatically populates in the app's "Spend" tab.
You'll get a monthly breakdown in four categories: What's due, what you've saved, what you've spent and an overall limit.
For me, the most useful information came from the "Overview" section, which showed me my credit card spending by merchant. I knew I went to Target a lot, but I wasn't quite prepared to learn that last year, I spent more than $4,389 there.
What sets Cleo apart is the "Ask Cleo" tab, which allows you to talk with 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 cash in my accounts, the chatbot told me, "Go for it, pal." The bot also invites you to take a quiz to see how well you understand your finances.
The app is fun, but it's not perfect. For example, it incorrectly assumed some one-time purchases were recurring bills.
Cleo has a free version, which gives you basic budgeting features, as well as three paid subscription tiers:
- Cleo Grow ($2.99 a month) offers savings challenges and access to Cleo's high-yield savings account.
- Cleo Plus ($5.99 a month) allows you to request cash advances up to $250.
- Cleo Builder ($14.99 a month) allows you to request cash advances up to $500 and add a secured credit card to your wallet.
What I liked
- Artificial intelligence encourages real accountability: Finances can be an awkward topic, 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 reviews your transaction history to identify where you should try to spend less. For example, the app recommended I limit my Target spending to $158 for the next 14 days for an estimated savings of $40. Cleo delivered 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. The functionality is limited, though. 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 should your money on autopilot: I believe that AI can help solve some people's money problems, but it can't do it all. While I was genuinely impressed with Cleo's AI chatbot, the app's automated understanding of my bills was far from perfect. And overspending is a human problem, so you need to commit some of your own energy to make budgeting a success.
- Cash advances aren't a long-term solution: Cleo offers interest-free cash advances between $250 and $500. These can be appealing if you're struggling to make ends meet, but they won't help you learn to avoid the need for extra cash in the future. A cash advance should be a one-time necessity, not a regular solution.
- Paid features may not be worth it: In addition to cash advances, the main perks of Cleo's paid tiers include access to a secured credit card and savings account. With plenty of free bank accounts and secured credit cards out there, this isn't all that unique. And while Cleo's savings account has a respectable 3.52% annual percentage yield, 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 information. It also uses Plaid to sync with your bank accounts and never stores any of your banking details. In addition, the company doesn't sell your data, which means you never have to worry that your financial information will wind up in the hands of some other company trying to sell you additional products or services.
Who is Cleo best suited for?
If you're bored by the usual budgeting apps or need help sticking to your spending goals, Cleo could be for you. Its fun AI chatbot and custom savings challenges can make budgeting more enjoyable and motivate you to be smarter with your money.
The app's features also feel tailored to people who haven't had a great experience with the traditional banking industry. For example, if you've struggled with overdraft fees or need help boosting your credit, Cleo's Builder tier 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. For example, Rocket Money has plenty of features and an easy-to-use interface for free or as little as $6 a month.
If you're attracted to Cleo's cash advances and savings account, you might enjoy Chime. Chime is a banking app rather than a budgeting app, but it offers a secured credit card, a checking account and a high-yield savings account -- without the need to pay monthly fees. Plus, its MyPay tool allows you to access up to $500 of your paycheck early, free of charge. (Unless you need the cash immediately, in which case there's a $2 fee).
FAQs
Yes. Cleo has been in business since 2016 and available in the US since 2018. According to the company's latest figures, more than five million people use the app. Cleo partners with Thread Bank for its savings account and WebBank for its secured credit card.
Cleo has a free version with limited functionality. To take advantage of more of the app's features, you can upgrade to one of the three paid tiers.
Cleo Grow costs $2.99 a month and includes the ability to create challenges, round up spending and open a linked high-yield savings account. Cleo Plus costs $5.99 a month and offers cash advances up to $250. Cleo Builder costs $14.99 a month and includes a secured credit card, priority customer support and cash advances up to $500.
Is Cleo worth paying for?
With 4.6 out of 5 stars on the App Store and 4.3 on Google Play, it's clear that a lot of people love Cleo. Its AI chatbot is a useful way to learn more about your finances, and its casual tone injects some fun into budgeting.
That said, you can get many of the premium services Cleo offers without a monthly fee. For example, Chime's Credit Builder Card has no annual fee, and the financial tech company's online checking account offers a $500 payday advance option for eligible users -- all at no extra cost. So, if you're thinking of springing for one of Cleo's pricier subscriptions, you may want to weigh your options.
English (US) ·