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When I hear the word “budgeting,” I don’t usually think of the word “fun.” While I enjoyed test driving popular tools such as INAB and EveryDollarthe majority budgeting applications make me feel like I’m 16 listening to my parents talk about the dangers of overspending.
Cleo, however, is an exception to the norm. The app makes managing your money seem more like a game with spending and saving challenges, and its cheeky AI chatbot might make you laugh. For example, he urged me to “fuck off” my finances” – a phrase that definitely never left my parents’ mouths.
Read on to learn more about Cleo and whether it’s worth adding to your phone.
Cleo
Like
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Sassi AI chatbot
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Savings challenges
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Free basic budgeting functions
I don’t like it
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AI doesn’t mean “hands-off”
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Cash advances can be too tempting
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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 information through a secure third-party service, such as Plaid, and your transaction history is automatically populated in the “Spending” tab of the app.
You will get a monthly overview in four categories: what is needed, what you have saved, how much you have spent and the total limit.
For me, the most useful information came from the “Overview” section, which showed me the merchant spending on my credit card. I knew I went to Target a lot, but I wasn’t quite ready to learn that I spent over $4,389 there last year.
What sets Cleo apart is the “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 cash in my accounts, the chatbot told me, “Go ahead, buddy.” The bot also invites you to take a quiz to see how well you understand your finances.
The app is fun, but not perfect. For example, he incorrectly assumed that some one-time purchases were recurring bills.
Cleo has a free version, which gives you basic budgeting features, as well as three paid subscription levels:
- Cleo Grove ($2.99 per month) offers savings challenges and access Klein High Yield Savings Account.
- Cleo Plus ($5.99 per month) allows you to request a cash advance of up to $250.
- Cleo Builder ($14.99 per month) allows you to requestcash advance up to $500 and add a secured credit card to your wallet.
What I liked
- Artificial intelligence encourages real accountability: 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 awkwardness that can come with normal discussions about money.
- Challenges can motivate you: Cleo automatically reviews your transaction history to identify where you should try to spend less. For example, the app recommended that I limit my target spending to $158 over the next 14 days for an estimated savings of $40. Cleo delivered updates and encouraged me 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 cannot 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 have money on autopilot: I believe that AI can help solve some people’s money problemsbut not everything can. While I was genuinely impressed with Cleo’s AI chatbot, the app’s automated understanding of my accounts was far from perfect. And overspending is a human problem, so you need to invest some of your energy to make budgeting work.
- Cash advances are not a long-term solution: Cleo offers interest-free cash advances between $250 and $500. This may be attractive if you’re struggling to make ends meet, but it won’t help you learn to avoid needing extra cash in the future. A cash advance should be a one-time need, not a regular solution.
- Paid features may not be worth it: In addition to cash advances, the main benefits of Cleo’s paid tiers include access to a secured credit card and savings account. With plenty free bank accounts and secured credit cards outside, this is not all that unique. And while Cleo’s savings account has a respectable 3.52% annual percentage rate of return, or API, some of the best high yield savings accounts pay as much as 5% API.
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 bank details. Plus, the company doesn’t sell your data, which means you never have to worry about your financial information ending up in the hands of another company trying to sell you additional products or services.
Who is Cleo best for?
If you’re bored with the usual budgeting apps or need help sticking to your spending goals, Cleo might be for you. Its fun AI chatbot and customized 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 much experience with the traditional banking industry. For example, if you’ve been struggling with overdraft fees or need help building your credit, Cleo’s Builder level offers cash advances and a secured credit card.
Alternatives to the Cleo app
There are plenty of others budgeting apps worth considering if Cleo is not right for you. for example, Rocket Money it has many features and an easy-to-use interface for free or as little as $6 per month.
If you are attracted to Klein cash advances and savings account, you may enjoy it Chime. Chime is a banking app, not a budgeting app, but it does offer a secured credit card, checking account, and high-yield savings account—without having to pay monthly fees. Plus, its MyPay tool lets you access up to $500 of your pay early, for free. (Unless you need the cash immediately, in which case there is a $2 fee).
FAX
Yes. Cleo has been in business since 2016 and has been available in the US since 2018. According to the company’s latest data, 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 three paid tiers.
Cleo Grove costs $2.99 per month and includes the ability to create challenges, round up spending, and open a linked high-yield savings account. Cleo Plus costs $5.99 per month and offers cash advances of up to $250. Cleo Builder costs $14.99 per month and includes a secured credit card, priority customer support, and cash advances of 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 helpful way to learn more about your finances, and its casual tone brings some fun to budgeting.
Additionally, 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 technology company’s online checking account offers a $500 cash advance option for eligible users — all at no extra cost. So if you’re considering getting one of Cleo’s more expensive subscriptions, you might want to weigh your options.
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