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February 2, 20260 citationsOpen Access

A Novel Framework For Proactive Financial Wellness: The Cognitive-AI Expense Tracker With Predictive Analytics And Behavioral Nudging

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PKPrince KumarAKAmit KumarPPParimal Pal

Key Points

  • The aim is to develop an AI-powered expense tracker that enhances financial wellness through proactive insights and interventions.
  • Developed the Cognitive Financial Assistant integrating NLP and CV technologies.
  • Implemented a Predictive Behavioral Engine for forecasting spending and stress.
  • Conducted a proof-of-concept implementation and analyzed user study data.
  • Achieved a 23% reduction in impulsive spending in test users.
  • Reported a 31% increase in financial confidence among users compared to control.
  • Demonstrated the efficacy of personalized, context-aware financial nudging.

Abstract

Traditional expense trackers function as passive digital ledgers, requiring significant manual input and offering limited, retrospective insights. This paper proposes a novel framework for an AI- powered expense tracker that transcends this reactive model. The proposed system, termed the Cognitive Financial Assistant (CFA), leverages a multi-modal architecture integrating Natural Language Processing (NLP) for seamless transaction logging, Computer Vision (CV) for receipt digitization, and a Predictive Behavioral Engine to forecast future spending and financial stress. Its core innovation lies in its Proactive Nudge Engine, which uses behavioral economic principles to deliver context-aware, personalized interventions aimed at improving financial decision-making in the moment. We detail the system\\\'s architecture, present a proof-of-concept implementation, and analyze preliminary user study data (N=150) suggesting a 23% reduction in impulsive spending and a 31% increase in user-reported financial confidence compared to control groups using standard trackers. This research establishes a new paradigm for personal financial tools: from passive record-keepers to active, cognitive partners in financial wellness.

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Cite This Study

Kumar et al. (2026) studied this question.

synapsesocial.com/papers/6980ff49c1c9540dea81238chttps://doi.org/10.5281/zenodo.18440685
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Also Consider

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  1. 1Enhancing Personal Finance Management Using AIBased Predictive Analytics And Intelligent Chatbot System2026
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  5. 5Smart Expense Management Using AI: "Financial Storytelling with Google Sheets Integration2026