What is an expense tracker?

An expense tracker is primarily a tool or application designed to help individuals monitor and record their daily spending habits. It allows users to categorize expenses, set budgets, and review their financial activities over time. By effectively tracking daily expenditures, individuals can gain insights into their spending patterns, identify areas where they can cut back, and manage their budgets more effectively.

This tool is crucial for personal financial management as it assists in maintaining financial discipline and achieving financial goals. It empowers users to make informed decisions about their spending and saving habits, ultimately leading to better financial health.

The other options describe different financial tools or strategies that do not specifically relate to monitoring expenses. For instance, a focus solely on income or investment strategies does not encompass the broader scope and functionality of an expense tracker, which is unique in its purpose of tracking and managing spending. An application for accumulating savings is also different, as it implies a focus on savings growth rather than the analysis of expense patterns.