Empathic Budgeting: Linking everyday finances with Mood
2025
Research Methods Used
Focus Groups, Diary Study, Survey
Role
UX Researcher
Timeline
January 2025 - April 2025
Tools
Team
Individual + Team-based
INTRODUCTION
There are so many budgeting apps - why does this one matter?
This case study explores how design can better support long-term financial behaviour, informed by qualitative and longitudinal research.
Research Statement
Many budgeting apps fail not because of missing features, but because they do not support the emotional and behavioural realities of managing money over time, resulting in low engagement and drop-off.
Objectives
🎯 Support users in understanding and reflecting on their financial behaviour, not just tracking transactions.
🎯 Reduce emotional friction around budgeting to improve long-term engagement.
🎯 Provide structure and feedback that helps users make informed financial decisions over time.
METHODS USED - WHY?
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2
3
Focus Group
Survey
Diary Study
Starting with a Focus Group...
A focus group was used to explore participants’ current budgeting habits, attitudes toward money management, and initial perceptions of budgeting tools.
This method helped discover challenges, emotional responses, and language used when discussing finances, which helped identify the problem early on.
Followed by a Survey...
Following the Focus Group, a Survey was conducted to gather a large amount of data from a diverse group of people to further validate user patterns and challenges discovered.
Ending it with a Diary Study...
Finally, after the Survey, a Diary Study was conducted over several weeks to capture how participants managed their finances in a day-to-day context.
Participants logged budgeting behaviours, emotions, and challenges as they occurred, revealing patterns that short-term studies often miss.
FOCUS GROUP
How it was conducted
The 1-hour session involved 5 participants and followed a structured discussion framework. While key topics guided the conversation, participants were encouraged to share experiences and insights freely.
Open-ended questions and follow-up probes were used to encourage participants to expand on their experiences and reflect on their behaviours.
What was discovered? - Insights Summarized
💡 Financial Attitudes
Participants showed a strong desire to feel aware and in control of their finances, though motivation fluctuated based on life circumstances.
Some participants actively monitored their balance and spending, while others struggled to maintain budgeting habits due to unstable income or lack of immediate financial responsibility.
💡 Emotional Relationship with Money
Budgeting was closely tied to emotion, not just behaviour. For some, tracking spending triggered guilt or stress, leading them to avoid budgeting altogether.
Feelings of control were often associated with not spending or successfully paying bills, which participants described as a sense of relief. Stress increased impulsive spending.
💡 Pain Points
Common challenges included:
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Inconsistent income, making traditional budgeting feel unrealistic
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Difficulty maintaining long-term consistency
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Avoidance behaviours driven by guilt or anxiety around overspending
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A lack of external accountability
💡 Triggers for Engagement
Participants were more likely to engage with a budgeting tool if it:
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Provided gentle accountability rather than punishment
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Offered positive reinforcement when they made good financial decisions
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Allowed users to feel in control of how their money was tracked
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Used notifications thoughtfully to encourage awareness, not shame
Images from the Session
Next, a Survey was conducted to validate patterns and gather broader quantitative data from a larger group of participants.
SURVEY
🔍 Key insights from the survey show a comparison between consistent budgeters vs those who do not.
📝Responses
A total of 51 responses were collected. This data helped identify key trends in budgeting behaviours, common obstacles, and potential strategies for improving financial habits.
51
responses
💡 Detailed Findings
Result
25 participants budget often, 5 participants budget always, while 15 participants never or rarely budget.
Key Finding
Among the participants, the majority seem to budget regularly. There happens to be a wide gap between those who budget consistently vs those who do not.
Result
Most individuals who budget do so primarily to save money (14 participants) and track expenses (14), with financial stability being another significant motivator (11). Debt reduction is a lesser priority (2).
Key Finding
The most common motivations for budgeting are saving money and managing expenses. This shows that financial security and expense tracking are top priorities.
Result
18 participants who do not consistently budget want to start budgeting to save money, while 8 participants wish to successfully manage their expenses. Debt and financial stability happen to be a lesser priority.
Key Finding
Individuals who do not consistently budget are primarily motivated by saving money and managing expenses.
Result
38 participants agree that budgeting helps them feel more in control of their finances, with 22 participants strongly agreeing and 16 agreeing. Only a small percentage (2) disagree.
Key Finding
Most individuals believe that budgeting enhances their sense of financial control, reinforcing the importance of structured financial planning.
Result
19 participants claim that budgeting has positively impacted their finances, along with 20 individuals who believe budgeting has been ‘somewhat helpful’ to their lives.
Key Finding
Most individuals believe that budgeting enhances their sense of financial control, reinforcing the importance of structured financial planning.
Result
Nearly half of the respondents (22) who do not budget believe that budgeting would positively impact their finances by helping them save money and manage expenses. Another 10 participants think it would be somewhat helpful, but they may still struggle at times.
Key Finding
Most individuals who do not budget consistently believe that budgeting would be beneficial, primarily to save money and manage expenses, highlighting a strong perceived value in financial planning.
Result
The most common method of budgeting among respondents is keeping a mental note of their budget, with 26 participants following this approach.
Key Finding
Despite the availability of structured tools like apps and spreadsheets, over half of the respondents rely on memory to track their budget.
Result
Among respondents who don’t currently budget, the most preferred methods for potentially tracking their budget would be a budgeting app (13) and keeping a mental note of it (13), followed by tracking their finances in a notebook (10).
Key Finding
Unlike those who already budget, those who don’t yet budget lean toward potentially using budgeting apps as their preferred method.
Result
Among the respondents, the most common budgeting challenge is dealing with emergencies or surprise costs, with 28 participants identifying this as their biggest hurdle. Closely following this, 23 participants struggle with controlling their spending. Another major challenge is unstable income, which 17 participants agreed with.
Key Finding
Emergency/surprise costs, lack of self-control, and an unstable income seem to be the biggest budgeting challenges. These results highlight the importance of emergency funds, flexible budgeting strategies, and better spending habits.
Result
The most motivating budgeting feature is visual charts showing progress (29 participants), followed by notifications for budget limits selected by 27 participants, and the third most preferred feature is earning points or discounts selected by 25 participants.
Key Finding
People are most motivated by visual tracking, real-time notifications, and financial rewards when budgeting.
Survey Insights - Summary
💡 Saving money and expense tracking are the primary drivers of budgeting, regardless of consistency.
Both consistent and inconsistent budgeters are motivated by saving money and managing expenses, while debt reduction and long-term financial stability are secondary concerns. This indicates that users view budgeting as a short-term control tool rather than a long-term financial strategy.
💡 Budgeting is widely perceived as valuable, but consistency remains a challenge.
Most participants believe budgeting improves financial control and has a positive impact on their finances, even among those who do not currently budget. However, reliance on mental tracking and irregular habits suggests that users struggle with maintaining consistency, not understanding the value of budgeting.
💡 Users need flexible, supportive tools to handle unpredictability and self-control issues.
Unexpected expenses, impulse spending, and unstable income are the most common barriers to effective budgeting. Participants are most motivated by visual progress tracking, real-time alerts, and rewards, highlighting a strong opportunity for tools that provide immediate feedback and adapt to real-life financial fluctuations.
To complement the broader quantitative insights from the survey, a Diary Study was conducted to capture participants’ real-time spending behaviours.
DIARY STUDY
How it was conducted
The diary study was conducted over 10 days to capture participants’ real-time financial behaviours and emotions related to budgeting.
6 participants (3 primary + 3 backup) were asked to complete a structured daily diary using Google Forms, guided by a mix of open and closed-ended prompts.
Entries focused on spending decisions, challenges, emotional responses, and any adjustments made to their budget throughout the day. Regular email check-ins were used to encourage consistency and participation.
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responses
To better understand the behaviours, motivations, and pain points captured in the diary study, I created a User Persona, which informed the user's Journey Map.
Let's take a closer look at Sam's journey...
Sam begins her week with good intentions but lacks structure.
While Sam sets a mental budget at the start of the week, there’s no formal or guided structure, which leads to uncertainty and inconsistency.
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Tracking feels like a chore, and Sam quickly drops it.
Expense logging starts strong but becomes mentally taxing and inconsistent. This disengagement increases as the week progresses.
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Impulsive spending and social pressure derail progress midweek.
Social outings and peer pressure lead to unplanned purchases, making Sam feel guilty and frustrated.
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Guilt triggers avoidance, leading to an emotional spiral.
After overspending, Sam avoids her budget altogether and feels anxious/fearful of checking her bank balance.
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Weekends are a window for reset and motivation.
Sam reflects and shows strong intent to improve after the week ends, making this a key moment to support long-term behavior change
💡 Diary Study Insights - Summary
Over the 10-day diary study, participants’ spending behaviours were strongly influenced by social plans, emotional triggers, and energy levels. Impulse purchases, mainly food and drinks, were common and frequently followed by feelings of guilt.
While most participants attempted to track expenses using apps or notes, consistency remained a major challenge, and daily budgeting was often described as unsustainable. Participants found it easier to stay within budget when spending time at home, whereas social outings significantly increased the likelihood of overspending.
Key barriers included social pressure, irregular income, and low motivation, though participants demonstrated strong self-awareness and a genuine desire to develop healthier financial habits.
These research findings served as the foundation for the design recommendations that follow.
DESIGN RECOMMENDATIONS
Feature 1: Make progress visible to motivate users
💡 Insight
Users are most motivated by visual progress tracking. Charts, progress bars, and encouraging feedback help users feel in control and reduce guilt after overspending.
📌 Recommendation
Design a central dashboard with real-time visual charts and progress indicators that emphasize overall progress rather than daily perfection.
Feature 2: Prevent overspending with real-time nudges
💡 Insight
Users often disengage after overspending but wish they had timely reminders before going over budget. Proactive alerts are seen as supportive rather than intrusive.
📌 Recommendation
Introduce customizable real-time notifications that warn users as they approach their budget limits, helping interrupt impulse spending in the moment.
Feature 3: Support flexible budgeting for unpredictable days
💡 Insight
Rigid budgets cause stress and feel unrealistic due to fluctuating moods, social plans, and unexpected expenses.
📌 Recommendation
Offer flexible budgeting modes that adapt to daily fluctuations, allowing users to adjust limits without feeling like they’ve failed.
Feature 4: Encourage consistency through positive reinforcement
💡 Insight
Users want motivation to stay consistent, not pressure to be perfect. Progress reminders and rewards help users re-engage after setbacks.
📌 Recommendation
Implement positive reinforcement features, such as streaks, milestones, and light rewards, to reinforce consistency and long-term engagement.
EARLY UI CONCEPTS
With insights from the research and key recommendations in mind, early sketches were developed to translate user needs into potential app features and layouts.
REFLECTION AND NEXT STEPS
Designing for financial behaviour means designing for emotion, not just numbers.
This case study showed me how important empathy and flexibility are when designing budgeting tools. Spending time with users through longitudinal research helped me understand not just how they budget over time, but also the emotional triggers and challenges that shape those behaviours.
I learned that users respond far more positively to encouragement, visible progress, and timely guidance than to rigid rules or restrictions.
Next Steps
The next phase will involve turning these sketches into low-fidelity screens, testing their usability, and iterating based on user feedback.
This will include:
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Refining the visual hierarchy and navigation based on sketch exploration.
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Adding elements such as notifications, progress tracking, and flexible budgeting features.
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Conducting prototype testing before moving to high-fidelity visuals.
