Abstract
The AI-Based Personal Finance Manager is a lightweight yet efficient web application aimed at simplifying personal financial management for everyday users. Many individuals struggle to record expenses consistently or fail to analyze their spending habits, which leads to poor budgeting and financial stress. This system provides a smart, automated solution using a combination of Python, Flask, SQL, and basic Artificial Intelligence techniques to make financial tracking easier and more accurate.
The application allows users to enter their daily expenses or upload simple transaction data, which the system then processes and stores in a secure SQL database. Using rule-based logic combined with a lightweight machine learning model, the system can automatically detect expense categories such as Food, Travel, Bills, Shopping, etc. This reduces manual effort and improves consistency in financial records.
In addition to classification, the system includes a budget prediction module that analyzes the user’s past spending patterns and predicts the next month’s expected expenses using simple regression or moving-average–based AI techniques. This forecast helps users make more informed financial decisions and plan their monthly budgets effectively.
A clean and user-friendly dashboard, built using HTML, CSS, and basic charting libraries, enables users to quickly visualize their financial data through graphs and category-wise summaries. These visual insights provide a clearer understanding of overall spending behavior, monthly trends, overspending areas, and potential savings.
Overall, the project demonstrates how AI can be applied in a simple and practical way to improve personal finance management. It offers an easy-to-use interface, real-time insights, and intelligent predictions without requiring complex banking integrations or advanced computational resources. This makes the system suitable for students, families, and individuals seeking a basic yet smart finance management tool.

Introduction
Managing personal finances is a critical part of daily life, yet many people struggle to consistently track their expenses and maintain an organized budget. Traditional methods such as writing in notebooks or manually updating spreadsheets are time-consuming, prone to errors, and often ignored after a few days. As a result, individuals lose awareness of their spending patterns and face difficulty in controlling unnecessary expenses.
To solve this problem, technology can play an important role. With the rise of artificial intelligence and lightweight web frameworks, it is now possible to create simple, efficient systems that help users monitor and understand their financial habits. The AI-Based Personal Finance Manager is designed with this purpose in mind. It provides a smart and user-friendly platform where users can record expenses, categorize them automatically, and receive insights into their monthly budget trends.
The system uses Python and Flask as the backend engine due to their simplicity and efficiency. A SQL database stores all expense records securely, ensuring that data remains organized and easily retrievable. To enhance user experience, the frontend is created using HTML and CSS, offering a clean interface that even non-technical users can understand.
Artificial Intelligence is introduced in a simple but effective way—by automatically identifying expense categories and predicting next month’s financial requirements. Instead of manually grouping each expense, the system uses rule-based logic and basic machine learning to classify entries such as Food, Bills, Transport, or Shopping. Similarly, by analyzing previous spending patterns, the AI model estimates future expenses, enabling users to plan budgets more confidently.
Overall, the introduction of AI into this project makes personal finance tracking smarter, more automated, and more reliable. The goal is not to build a complex banking system but a lightweight personal assistant that helps users make better financial decisions with minimal effort.