AI for managing money: 7 things you can ask ChatGPT to do

Artificial intelligence is becoming a bigger part of everyday life, and now more people are using the tool to manage their money faster and more effectively.

Lloyds Banking Group found that more than 28 million UK adults are turning to AI tools for budgeting, saving and financial education.

Tools such as ChatGPT and Claude can help you organise information, identify areas where you could potentially save and explain financial jargon in plain English.

So are you making the most of the technology to live a richer life?

Ask ChatGPT to create a budget

One of the simplest ways to use AI for your finances is to ask it to help you build a budget.

A good budget is the foundation of better finances but it can be difficult to know where to start alone.

Give an AI tool such as ChatGPT your monthly income and regular outgoings and ask it to organise these into categories such as rent or mortgage, other regular outgoings, food, going out.

For example, you could type: "I earn £2,000 a month. My rent is £800, council tax is £150, energy is £100 and I spend around £300 on food. Help me create a realistic monthly budget and show me where I could cut back."

The more accurate information you provide, the more useful the response is likely to be.

Just remember not to give AI passwords, bank login details or full account information.

Also AI doesn't know your complete financial circumstances unless you tell it, so treat the suggestions as a starting point rather than personalised financial advice.

Ask AI to find where you're overspending

If you're struggling to work out where your money is disappearing each month, AI can help you analyse your spending.

You could paste a list of transactions, after removing personal information such as your account number, card details and address, and ask it to identify patterns.

For example: "Group these transactions into categories and tell me which areas I'm spending the most money on."

You could then ask: "What three areas could I reduce without making major changes to my lifestyle?"

This can be particularly useful if you have lots of small purchases that don't seem significant individually but add up over the month.

Ask ChatGPT to help you save money on bills

AI can also help you prepare for a bill review.

For example, you could ask it to create a checklist of household expenses to review, including broadband, mobile phone, insurance, energy, as well as streaming services and other memberships.

You could then ask: "Give me a checklist for reviewing my household bills and subscriptions and explain which ones I should check first."

It can also help you prepare questions before contacting a provider or switching service.

However, don't assume an AI-generated recommendation is the cheapest deal currently available. AI tools can and do make mistakes, treat it's feedback as signals as to where you could save and then check yourself for cheaper prices or tariffs.

Using a comparison site before switching should help show your options.

Ask AI to explain financial jargon

If you've ever felt overwhelmed and confused by the wording from financial companies, AI can step in to help.

Instead of searching through pages of financial jargon, you can ask AI to explain a term in straightforward language.

For example: "Explain APR to me as if I've never borrowed money before, and give me an example using a £1,000 loan."

You can also ask it to compare two terms: "What's the difference between an APR and an interest rate?"

This can be particularly helpful when you're comparing financial products and want to understand what you're actually being charged.

But if you're making an important financial decision, check the explanation against information from the lender, bank, regulator or another trusted source.

Ask ChatGPT to help you make a savings plan

If you've got a particular goal, such as an emergency fund, holiday or new car, AI can help you work backwards from your target.

For example: "I want to save £1,200 over the next 12 months. How much do I need to put aside each month?"

You could then make the request more detailed: "I can afford to save £80 a month. Show me how long it would take to reach £1,200 and suggest ways I could find an extra £20 a month."

AI can also help you turn a vague goal into smaller milestones, which can make saving feel more achievable

Ask AI to help you tackle your debts

AI can help you organise your debts so you can see what you owe and understand the different repayment options.

You could provide details such as:

• The amount outstanding

• Interest rate

• Minimum monthly payment

• Payment due date

Then ask: "Help me organise these debts by interest rate and explain the difference between paying off the highest-interest debt first and paying off the smallest balance first."

This can help you understand approaches such as the debt avalanche and debt snowball methods.

Just remember to be careful about putting sensitive financial information into an AI chatbot.

And if you're struggling to keep up with repayments, don't rely solely on AI.

Free debt advice organisations can help you look at your circumstances and work out what to do next.

Ask AI to check whether you could be missing financial help

Another potentially useful role for AI is helping you work out what questions you should be asking about financial support and where you could get further help.

For example, you could ask: "I'm a single parent with two children, I earn £X a year and pay £X in rent. What types of government support or benefits should I check whether I'm eligible for?"

It could then give you a checklist of schemes or benefits to investigate.

This could include things such as:

• Universal Credit

• Council Tax Reduction

• Free school meals

• Healthy Start

• Help with childcare costs

• Energy bill support

• Housing support

However, AI should is not the same as a benefits calculator or an official source of eligibility information. Rules can change and eligibility depends on your individual circumstances.

Use the AI response as a list of things to investigate, then check the relevant GOV.UK, council or official scheme website before making a claim.

Is it safe to use ChatGPT for your finances?

AI can be useful for organising information and explaining financial concepts, but you should be careful about the information you give it.

Never enter private information that you wouldn't share with a stranger. This includes your bank account number, sort code, card number, PIN and other passwords, or any other information that could identify or compromise you.

The biggest thing to remember is that AI does make mistakes.

It can produce information that sounds convincing but is incorrect, outdated or based on the wrong assumptions.

That matters when you're dealing with money.

You should never rely on AI for decisions involving investments, mortgages, pensions or significant borrowing. Instead use it as part of wider research, and use a trusted professional or source to help understand your individual circumstances.