Summary
Categorization directly determines how your spending is calculated in budgets and insights. Every transaction’s category defines where it appears and how it impacts your financial analysis.
How This Works in Nance
In Nance, category is the primary source of truth for all calculations and analysis.
Impact on Budgets
- Budgets are set per category
- When a transaction is categorized:
- It is counted toward that category’s budget limit
- It affects:
- Budget usage
- Remaining balance
- Overspending alerts
If a transaction is miscategorized:
- It will impact the wrong budget
Impact on Insights & Analytics
- Insights are generated based on category-wise spending
- Categories determine:
- Spending breakdowns (e.g., Food vs Travel)
- Trends over time
- Top expense areas
Incorrect categorization leads to:
- Misleading insights
- Inaccurate financial understanding
Unified Across All Transactions
Categorization affects all types of transactions:
- Bank transactions
- Credit card transactions
- Cash transactions
Everything flows into one category-driven system
Why This Matters
- Categories shape your entire financial view
- Small errors can distort budgets and insights
- Accurate categorization = accurate decisions
Important to Know
- You can edit categories anytime
- Nance learns from your corrections
- Miscellaneous + notes helps improve future accuracy
Change the category,
and you change the story your money tells.