UX RESEARCH: PERSONAL FINANCES
By: Melis Tokgoz
This project aims to provide a platform where users can easily budget and gain financial literacy skills. The target audience for this product is young adults generally ranging from ages 18-35, who are having their first experiences with large-scale financial decisions and budgeting. The purpose of this research was to develop an understanding of people’s habits surrounding personal finances and money management. The screener surveys and in-person interviews look at how people feel about their personal finances, what sort of tools they use, as well as what potential tools would best benefit their current financial situation. The research was then used to create personas that represent the primary users.
SURVEY QUESTIONS 1. What is your age range? 18-24 25-34 35-44 45-54 55-64 65 or older 2. What is your gender?
$100,000 or more I prefer not to answer. 6. How often do you make money saving a habit? (Actively depositing money into bank accounts, making budgets, not spending money, etc.) A couple of times a month. Once a month. A few times a year. Once a year or so. I don’t think about saving money. 7. Do you use any financial planning or budgeting tools?
Free response
Yes No
3. What is the highest level of education you have completed?
8. If yes, which apps, products, or services do you use?
High school Some college or university Technical/trade training College diploma/certificate Bachelor’s degree Master’s degree Doctorate Other:
Free response
4. Choose a statement that you most identify with: I am currently a student. I am currently looking for work/a new job. I am currently a working professional. I am currently retired or semi-retired. Other: 5. What is your annual income? $9,999 or less $10,000 - 24,999 $25,000 - 49,999 $50,000 - 74,999 $75,000 - 99,999
9. What are the most difficult parts of your personal finances? Please pick three. Tracking my spending. Creating a realistic budget. Actually sticking to a budget. Investing money. Saving for my long-term goals. Paying off debt. Other: 10. Which of these tools would be beneficial to your personal finances? Check all that apply. Knowledge and skills on financial literacy. Breakdown of weekly/monthly spending and saving habits. Daily budget plans. Budget plans and roadmaps on how to reach short-term and long-term life goals. Assistance in planning for investments. Monthly financial progress reports and reflections. Media related to my financial goals. Professional financial advice/consulting.
SURVEY RESULTS What is your age range?
What is your gender?
56.5%
46.9%
13%
83.1%
33.3%
Choose a statement you most identify with:
What is the highest level of education you have completed?
13.6%
12.4%
17.5%
18-24
Female
High school
Bachelor’s degree
25-34
Male
Some college/university
Master’s degree
35-44
Non-binary
Technical/trade training
Other
45-54
I prefer not to answer
College certificate/diploma
What is your annual income?
How often do you make saving money a habit? 15.8%
20.3% 65.5%
Do you use any financial planning or budgeting tools?
69.5%
22.6% 28.2% 19.8%
23.7%
30.5%
13.6%
9%
48.6%
I am a student
$9,999 or less
$75,000 - 99,999
I am looking for work
$10,000 - 24,999
$100,000 or more
I am a working professional
$25,000 - 49,999
Other
$50,000 - 74,999
I prefer not to answer
A couple of times a month Once a month A few times a year
Once a year or so
Yes
I don’t think about saving money
No
If yes, which apps, products, or services do you use?
What are the most difficult parts of your finances? 14 (26.4%)
Mint 4 (7.5%)
Wealthsimple
3 (5.7%) 15 (28.3%)
Other
Other
9 (17%) 5
15
10
20
Knowledge and skills on financial literacy
89 (50.3%) 88 (49.7%)
Breakdown of spending and saving habits 56 (31.6%)
Daily budget plans
Assistance in planning investments
97 (54.8%)
Monthly financial reflections
70 (39.5%)
30 (16.9%)
Professional financial advice 0
20
83 (46.9%) 40
60
80
100
12 (6.8%) 20
40
60
80
100
120
Some major insights were that a large majority of people find themselves not using any sort of products or services manage their finances. Out of the 117 participants, 53 responded that they did use at least one financial tool. The majority of participants found actually sticking to a budget and saving money for long-term goals to be difficult parts of their finances. Desired tools are budget plans and roadmaps on how to reach-long terms goals, as well as assistance with investments.
90 (50.8%)
Budget plans on how to reach goals
0
76 (42.9%)
The total amount of participants for this screener survey was 177 participants. The survey was distributed through various online forums and communities. The first couple of questions gain a demographic understanding of who the participants are. The rest of the questions aim to understand habits, needs, and pain points when it comes to personal finances.
Which of these tools would be beneficial to your personal finances?
Media on finances
91 (51.4%)
Paying off debt
4 (7.5%)
0
75 (42.4%)
Saving money for long-term goals
3 (5.7%)
Investments
104 (58.8%)
Investing money
Banking apps Deposits
62 (35%)
Actually sticking to a budget
7 (13.2%)
Agenda/planner
79 (44.6%)
Creating a realistic budget
19 (35.8%)
Spreadsheets (Google, Excel, manual) Notebook
Tracking spending
120
INTERVIEWS Interview 1 University student, 18-24 With this first participant, spending money was very much based on prioritizing. The participant said that every purchase is scrutinized, and is constantly trying to buy basic needs only. The participant doesn’t necessarily plan or keep a budget, as they have a limited income and not a lot of money to manage. During the interview, the participant mentioned that they don’t know enough about investing and would like to. The participant said that finances affect their heath because of things like affording prescriptions, as well as mental health due to stress. It also affects their social life, as sometimes they can’t afford to go out and feel socially isolated by doing so. The majority of their financial goals are to pay off student loans, as well as less tangible goals such as being able to retire. In terms financial tools, the participant uses their credit card as a record of spending, but isn’t happy with it. They also use paper statements as payment reminders, because they find digital notifications less effective. The participant also has less trust when it comes to digital tools. They have tried Mint once, but felt uncomfortable giving their financial information to a third-party application that wasn’t a bank. The participant also doesn’t like the idea of a “middle man” when it comes to financial services, and wishes to do things like income taxes on their own. Interview 2 Working professional, 18-24 With this participant, they felt that they weren’t saving enough. Saving to them means putting away money into a savings account every paycheck, or at least every other. They try to use their savings account as “money they can’t touch”. The participant finds personal finances to be difficult, because they feel they don’t know enough about it. One of the difficulties is figuring out how to spend for different types of expenses, as well as not having a way of tracking frivolous expenses, such as eating out.
The participant’s short-term financial goals are based on travel, while long-term goals involve a down payment for a home. Similar to the first interview, finances have an affect on the participant’s social life, as they won’t go out if their funds are low. Finances also have a negative affect on their mental health. They also find that they are sometimes putting off buying things they actually do need, such as their monthly metro pass. When it comes to financial tools, the participant doesn’t necessarily have a budget plan, but uses the TD Bank app to budget a little. They find that they need to visually see where their money going. They also use PocketGuard and TDMySpend, but find it difficult when these apps don’t update based on their current finances. The participant wants a calendar tools that displays when they get payments, when bills typically are, and suggested amounts or values for various expenses. They want to use it as a general breakdown of all the areas of their personal finances. The participant also wants more general financial knowledge, such as how much they should be putting away, as well as savings and retirement accounts. Interview 3 University student, 18-24 This participant makes a habit of putting money into a savings account once a month to limit frivolous spending. Similar the second interview, they mentally view this account as something they can’t touch. The participant finds that by doing so, finances are easy to manage. The participant didn’t know too much about budgeting. They make mental budgets, but doesn’t write or document anything down. As with the previous interviews, the participant finds finances can be difficult within social life, because going out is an expense. They also find that academic costs can be stressful, such as textbooks. The participant finds the RBC Bank app very helpful, as it easy for money transfers and seeing how much they have in their accounts. The participant wants a tool that could calculate how much they should be spending on mandatory needs, to avoid less frivolous spending.
NATALIA BELLAMY CONCERNS
FINANCIAL TOOLS
Natalia is most focused on university and what to do after graduating.
Banking apps
Natalia is primarily paying for expenses with her student loans. She currently isn’t working, but her parents do help her out with finances. Natalia feels like she is managing on borrowed money and it is difficult for her to budget with no meaningful income.
Budgeting apps
Natalia thinks about managing money often, but doesn’t use a large range of financial tools. She has a checking account, a savings account, and one credit card.
“Budgeting isn’t a huge part of my life; I don’t have an income to manage yet.”
MOTIVATIONS
Spreadsheets and plans Investments and savings Finance professionals
GOALS
Incentive
Graduate with good grades and get a job
Age: 21
Fear
Gain financial literacy
Gender: Female
Achievement
Track her spending habits
Job: Undergraduate Student
Growth
Learn how to create budgets for her lifestyle
Status: Single Archetype: The Learner
Family Social
Learn how to actually stick to a budget
BUDGET
Low
PLANNING
Low
THINK AND FEEL? How much do I allocate for the different expenses in my life? How do I prioritize? How do I make a successful budget? What does it mean to be financially responsible? I want to be able to pay off my student loans in the future. I want a career that I will enjoy and that will support me financially. How do I attain that?
HEAR?
SEE?
“Young people won’t be able to afford buying their own homes.”
School/student environment
“Finding a job may take a while for a new graduate.”
Process for taking out a loan
“How do you budget?”
Banking apps, cheques and e-transfers
“Are you being careful with your spending?”
Financial forms and applications
SAY AND DO? Uses a single bank to take out student loans and make credit card payments Spends money on tuition, textbooks, and school supplies Spends money on groceries, rent, and utilities Spends money on going out and social life Socializes with peers and colleagues often
PAIN
GAIN
Never learnt financial literacy or basic finance concepts Not having an income Mental health and stress over finances Doesn’t know what tools are available to manage money Has a hard time sticking to a budget Doesn’t know how to save for long-term goals
Financial literacy Learn about financial terms, concepts, and tools to be used in near future Track spending and saving habits Learn to make a budget Learn how to save for long-term goals
DAN NGUYEN CONCERNS
FINANCIAL TOOLS
Dan is a fairly new working professional, having just finished his education two years ago.
Banking apps
Dan thinks about managing money frequently, making sure to deposit money into his savings at least once a month. Through online banking, Dan sets up auto-deposits into his savings account. He also makes weekly budgets, and has recently been exploring how to invest his money.
Budgeting apps
Dan has big plans ahead, and wants to know how to finance them. His long-term goals are to finance a wedding and new home with his fiancé.
“How do I make my money go farther? I have big dreams ahead!”
MOTIVATIONS Incentive
Age: 28
Fear
Gender: Male
Achievement
Job: Software Developer
Growth
Status: Engaged Archetype: The Go-Getter
Spreadsheets and plans Investments and savings Finance professionals
GOALS
BUDGET
Advance his career Achieve long-term goals, such as buying a home Pay off the rest of his student loans
Family
Stick to budgets more strictly
Social
Start investing his money
Medium
PLANNING
High
THINK AND FEEL? What options do I have to invest my money? I want to be able to own a home one day. Will my career choice be able to provide for me financially? When do I need to start thinking about retirement? I want to be financially comfortable; I don’t want to always worry about money.
HEAR?
SEE?
“You should start saving for retirement as early as possible.”
Office and work environment
“Banks and financial services have such high fees!”
Banks, bankers, and accountants
“Does this service work? I want to try it.”
Banking, budgeting and investment apps
“What’s your financial plan?”
Digital interfaces on a regular basis Cheques and e-transfers Payments and bills
SAY AND DO? Goes to work and makes an income Makes weekly budgets Puts money into savings and investment accounts Pays for rent, utilities, groceries, social life, and daily expenses Tells friends and colleagues about effective products and services
PAIN
GAIN
Has to be able to finance long-term goals Worried about fulfilling future expenses Not making enough money to their liking Actually sticking to a budget once making it Has to learn financial literacy on their own Security when using financial services
Start saving better for both short-term and long-term life goals Learn more about investment options Start building a life – home, relationship, and career Professional financial advice and opinions Confident with saving and spending habits
TERESA JAMES CONCERNS
FINANCIAL TOOLS
Teresa has been a working professional for about ten years now, and has a young child with her husband. She wants a career that supports her and lets her have family time.
Banking apps
Teresa makes a monthly budget that includes her mortgage, utility fees, family’s needs, and daily spending. She also trys to invest money into her investment accounts.
“I want to use my money to make a successful future for my loved ones and I.”
Budgeting apps Spreadsheets and plans
Teresa’s concerns consist of being able to financially provide for family, such as paying for her child’s future education and paying off the mortgage for their home. She also worries about saving for her retirement.
Investments and savings
MOTIVATIONS
GOALS
Finance professionals
Incentive
Have a happy home life and fulfilling career
Age: 36
Fear
Provide for her child
Gender: Female
Achievement
Pay off her mortgage
Job: Public Relations Manager
Growth
Invest more money into her retirement account
Status: Married with one child Archetype: The Caregiver
Family Social
Seek out professional financial advice
BUDGET
High
PLANNING
Medium
THINK AND FEEL? I want a job that will provide my family with the best life and keep me happy. Will I be able to retire when I want to? How much of my income should I be allocating to savings, investments, and retirement? How will I pay for my child’s education? Are my current budgeting methods sustainable for the future? What do I need to improve?
HEAR?
SEE?
“I need these, mom.”
Office and work environment
“This is how much you owe.”
Family and home life
“What are your contributions to your TFSA and RSSP?”
Bills and payments
“When do you want to retire?”
Banks and finance professionals Accountants Personal spreadsheets
SAY AND DO? Goes to work and makes an income Spends time with their family Makes a monthly budget for all expenses Pays for their mortgage, utility fees, family expenses, and daily spending Puts money into savings and RSSP accounts
PAIN
GAIN
Needs more professional financial advice Worried about savings and retirement Worried about paying off mortgage Doesn’t know how to save for child’s education Needs more relevant financial tools
Creates a healthy and happy home life Improves their per-existing budgeting tools and methods Learns better tools on savings, investment, and retirement accounts Financial consulting and opinions
COMPETITIVE ANALYSIS: HEURISTICS
For this stage of the project, I did a competitive analysis on three of the most popular financial apps based on the findings from the surveys and interviews I conducted. The competitive analysis is based on Nielsen Norman Group's 10 heuristic principles. The apps I analyzed are Mint, RBC Mobile, and Wealthsimple.
MINT Mint is a personal financial management service for Canada and the US. With the mobile application, you can create personal budgets as well as track and pay bills. You can also keep record of all your financial transactions and learn more about your credit score. The service is meant to keep your bank accounts, credit cards, bills, and investments all in one place. Info at www.mint.com
System displays the status of your password as you create it.
Visible feedback of status when the user is signing in to the system.
Clear descriptions let the user easily pick which feature they would like.
Dashboard is easy to navigate and minimalist in design.
Budgets provide visual feedback on status through use of colour.
Use of data is flexible - the user can choose complexity.
System provides the user with alerts on unusual activity.
Help function leads to a community question and answer forum.
MINT ANALYSIS Visibility of system status
Match between system and real world
User control and freedom
Consistency and standards
Error prevention
The system constantly provides the user with information on what is going on in the interface. The product provides real-time feedback when creating an account, signing in, linking a bank account, and status of budgets. It also provides feedback when transactions have been completed and during unusual activity within the interface.
The system uses language that is familiar and easy for the user to understand when explaining personal finances.
The system supports adequate undo and redo functions.
The system follows interface conventions with familiar features in the login page and straightforward buttons for moving from one screen to the next.
The system provides the user with notifications of any unusual banking activity, so the user is aware of potential errors.
Recognition rather than recall
Flexibility and efficiency of use
Aesthetic and minimalist design
Help users recognize, diagnose, and recover from errors
Help and documentation
The system provides the user with clear instructions on moving through the dashboard and through various functions, such as creating a budget. It also provides straightforward prompts when moving from one screen to the next, so the user doesn’t need to remember previous dialogue.
The system tailors frequent actions for the user – spending data such as cash flow, spending trends, and budgets can be seen as simple visualizations or in-depth reports.
The system looks great and has a specifically branded aesthetic. The system provides the user with attractive and useful graphs, infographics, and data visualizations.
The system provides the user with error messaging and almost always gives suggestions on what to do next or how to fix the error.
The system provides a help feature with community questions and answers about the service. However, the system needs a help menu with frequently asked questions/ topics that are answered by Mint staff or specialists.
RBC MOBILE RBC Mobile is a mobile application for the Royal Bank of Canada. The product lets Royal Bank clients check balances, pay bills, deposit cheques, send money, and provides investing features. RBC Mobile also includes NOMI Insights, which is a money management tool. NOMI Insights summarizes banking activity across all RBC accounts and credit cards, as well as categorizes and summarizes your spending and saving habits. NOMI also learns your transaction patterns in order to assist with saving money. Info at www.rbcroyalbank.com/ways-to-bank/mobile/rbc-mobile-app/
System provides the user with alerts on unusual activity.
Data visualizations on monthly spending habits.
Simple terminology used to depict personal finance habits.
User can choose to view data as simple graphics, or as detailed transactions.
Function used to pay bills is straightforward to navigate.
System asks the user if they are ready before a transaction to prevent error.
Within the settings there is an extensive help menu.
The help menu includes frequently asked questions about the service.
RBC MOBILE ANALYSIS Visibility of system status
Match between system and real world
User control and freedom
Consistency and standards
Error prevention
The system provides the user with visualizations of spending data and notifications on unusual activity. However, the product could use more visualizations of real-time changes in bank accounts, spending, and when processing payments.
The system uses language that is familiar and easy to understand for the user when displaying financial information.
The system supports adequate undo and redo functions.
The system follows interface conventions with familiar features such as a login page and straightforward buttons for moving from one part of the dialogue to the next.
The system provides the user with the ability to prevent error. Before any financial transaction is completed, the system asks the user of they would like to edit or cancel the transaction. The system also provides notifications of any unusual banking activity, so the user is aware of potential errors.
Recognition rather than recall
Flexibility and efficiency of use
Aesthetic and minimalist design
Help users recognize, diagnose, and recover from errors
Help and documentation
The system proves the user with informative and clear instructions throughout an entire function, such as paying bills or sending money.
The system tailors frequent actions for the user – spending data can be seen as broad, simple visualizations or in-depth reports of financial transactions.
The system looks good and has a branded aesthetic. It provides the user with useful graphs and data visualizations.
The system provides the user with adequate error messaging. For example, the user receives notifications when there is unusual activity in the interface, but not a lot of suggestions on what to do.
The system provides the user with an extensive help menu that includes many frequently asked questions about the service.
WEALTHSIMPLE Wealthsimple is an online investment management service focused on making “investing easier for millennials.� The service is for clients in Canada, the US., and the UK. The mobile application is a robo-advisor platform with access to live investment advisors. Their approach to investing is based on Modern Portfolio Theory, and the product aims to provide clients with investments that match their long-term goals and risk tolerance. Info at www.wealthsimple.com
System uses an attractive aesthetic for its graphics and branding.
When creating an account, the system guides the user with easy instructions.
The user isn’t required to remember previous dialogue.
System uses easy and relevant concepts so user can understand financial terms.
Dashboard is easy to navigate and prompts for next steps are direct.
System provides clear explanations and help when user needs to make a choice.
User can find articles to help them with the service within the interface.
System provides the user with a help function.
WEALTHSIMPLE ANALYSIS Visibility of system status
Match between system and real world
User control and freedom
Consistency and standards
Error prevention
The system provides the user with visualizations of investing plans, and depicts the status of stocks using colour as they change.
The system uses language that is not only familiar to the user, but incorporates humour and personality when explaining investing and other financial terms.
The system supports several undo and redo functions. For example, it provides the user with the ability to change answers as they create their account preferences.
The system follows interface conventions with familiar features such as a simple dashboard, easy-to-follow plans, and simple buttons for continuing from one stage of the dialogue to the next.
The system oftentimes provides the user with the ability to prevent error by having undo features or the ability to change your answer.
Recognition rather than recall
Flexibility and efficiency of use
Aesthetic and minimalist design
Help users recognize, diagnose, and recover from errors
Help and documentation
The system provides the user with clear instructions on moving through various functions. When first creating their account, the user can just scroll up to see their previous answers, and don’t have to remember of the dialogue from one question to the next. When picking options, the user is provided with text instructions and hints on how to decide.
The system tailors frequent actions for the user – investing can be simple or complex. Your personal account can be tailored to your needs.
The system looks beautiful, it has a specifically branded aesthetic seen in its graphics, typography, and colour palette. The system provides the user with attractive and useful graphs, infographics, and data visualizations.
The system provides the user with adequate error messaging, and provides suggestions on what to do.
The system provides the user with an extensive help menu that includes various topics that are frequently asked about and articles with real-world relevance for the user.