Budget Buddy: An AI-Powered Personal Finance Management System

Abstract

Managing personal finances efficiently has become increasingly challenging in the modern world. Individuals struggle to balance income, expenses, and savings due to the lack of proper tracking tools, complex budgeting systems, and limited financial awareness. This research presents Budget Buddy, an intelligent and user-friendly personal finance management system designed to assist users in monitoring and optimizing their financial activities.
The proposed system uses artificial intelligence and data analytics to automate expense categorization, predict spending patterns, and generate personalized financial recommendations. Built using the MERN stack (MongoDB, Express.js, React.js, Node.js) with integrated visualization tools, Budget Buddy provides an all-in-one budgeting companion that enhances financial literacy and discipline. Testing results demonstrate that the system offers an 87% accuracy rate in expense classification and significantly improves user engagement and savings behavior.