Money Matters

Real-Life Budgeting

With rising costs outpacing American salaries, old budgets no longer suffice. We consult the experts for practical budgeting strategies tailored to 2025’s economic realities.

“Start by tracking your spending for a full month,” says Andrew Iven, senior vice president and director of product strategy at BOK Financial. “That snapshot helps you understand where your money is actually going and creates a foundation for making changes. From there, frameworks like the 50/30/20 rule can serve as a helpful guide. This method allocates 50% of your income to needs, 30% to wants and 20% to savings or debt payments. The most important thing is to adjust as your financial situation evolves rather than locking yourself into rigid monthly expectations.”

It is also important, says First Fidelity Bank’s (FFB) chief innovation officer John Symcox, to “make any money you have work on your behalf. It is always important to identify the places you can cut expenses — but additionally, are there any options to create new channels of income? These are always questions you have to start with in any economic environment.”

Iven suggests using credit cards for budgeted, big-ticket items and cash or debit for daily spending to avoid debt and earn rewards. If your budget falls short, consider cutting lifestyle costs, delaying discretionary purchases or finding creative ways to save. 

The Psychology of Spending

Many people, whether consciously or not, spend money they do not have or overspend on items they don’t need.

One way to avoid overspending “is by setting limits in advance and intentionally directing a portion of any change in income toward savings or debt repayment,” says Iven. “Pay yourself first. Allocate a majority percentage of your increase to savings, retirement or debt reduction first and then use the remainder towards more discretionary focuses. That kind of planning doesn’t mean cutting out fun altogether, but it does help ensure you prioritize your financial goals.”

Symcox mentions that many financial institutions have resources to help identify overspending habits.

“We have a tool called Money360 that allows customers to see where they are spending their money and even set up a budget with targets and alerts to stay on track. This is not an industry standard, however many banks and credit unions offer these tools, called ‘Personal Financial Management,’ that bring these features to the customers mobile app or online banking.”

Overspending often creeps up due to convenience, emotions or lack of structure, especially during relaxed periods like summer, says Iven. Credit cards worsen this by distancing spending from repayment, risking budget strain or debt. Tracking expenses and using cash or debit for daily purchases helps maintain awareness and control. 

Emergency Funds 

An emergency fund remains a critical financial tool, especially with rising daily costs and harder-to-absorb unexpected expenses, says Iven. Recommendations include saving three to six months of essential expenses, adjusted for job and income stability and personal risk tolerance. 

Start by assessing current monthly costs to set a savings target, and identify potential cutbacks. Even small, consistent contributions, like $20 or $50 per paycheck, can grow over time, especially with automated savings or tools that round up debit card purchases. 

Tax refunds and bonuses can further boost savings, which should be kept in a separate, accessible account to avoid spending on non-essentials. Once the emergency fund is complete, consider longer-term options like IRAs for better returns, but prioritize building that immediate financial safety net first.

Bridging the Financial Literacy Gap

Oklahoma schools and community organizations continue to evolve ways to educate the youth about finances through programs like Oklahoma Money Matters, Passport to Financial Literacy in K-12 schools and the Oklahoma Financial Educators Council. 

“The truth is, a lot of young people, especially in underserved communities, aren’t getting the financial education they need,” says Iven. “Even though Oklahoma has a statewide requirement, that doesn’t always mean students walk away with real understanding or confidence to manage their own finances. There are gaps. That’s why community organizations stepping in and doing their part is so important. 

“At BOK Financial, we work closely with Junior Achievement to send employees into schools and community centers through our Learn for Life program to teach financial wellness. These are hands-on sessions where students get to practice budgeting or think through real-life financial scenarios. There’s still work to do, but these efforts give students exposure to skills they may not learn anywhere else, and that’s an important start.”

Symcox and First Fidelity Bank also advocate for Junior Achievement in addition to broader, more consistent school programs to make finance less intimidating, stressing that early and ongoing education helps young people become comfortable with spending, budgeting, saving, investing, loans, insurance and other financial topics.

Retirement today calls for a more strategic and diversified approach than in the past. Relying solely on a 401(k) is rarely enough, says Iven. Diversifying across a mix of stocks, bonds, cash and international assets helps manage risk, especially during market volatility. One increasingly common strategy is the bucket approach, which separates savings into short-term cash or money market funds, mid-term (bonds) and long-term (growth-oriented investments). This helps ensure liquidity for immediate needs while giving long-term investments time to grow and recover from downturns.

“Using HSA accounts is a way to get a ‘triple tax advantaged’ account that doesn’t lock money up completely, but still limits usage. It’s one of the fastest growing savings vehicles,” says Symcox. “It does come with annual limits, so people have to understand many different methods for savings. We are actively working on ways that we can use financial literacy and gamification to help people understand the best strategies for them. It is always about finding ways to save money in as many ways as possible, so you live the lifestyle you can but still save discreetly. The other aspect that is becoming more and more common is that families are beginning to search for new additional income sources that don’t limit their lifestyle or are based in some activity that they love.”

Iven continues:  “Outside of employer-sponsored plans, IRAs and Roth IRAs provide flexibility and tax advantages. Traditional IRAs offer pre-tax contributions, while Roth IRAs offer after-tax contributions which allow for tax-free growth and withdrawals, making them especially valuable in the face of rising tax uncertainty.”

Financial Technology: AI Tools vs. Old-School Resources

Tools like ChatGPT and AI-powered apps are dubbed as ‘fintech’ (financial technology), and are changing personal finance.

“AI-powered tools are making personal finance feel more approachable,” says Iven. “People who might never sit down with a financial advisor now have a way to ask questions, get budget help or understand investment basics on their own time and in plain language. That kind of accessibility matters, especially for those just getting started or trying to make sense of multiple financial priorities.”

But, of course, AI has its limitations. 

“They aren’t a replacement for personalized advice from a financial professional,” Ivan continues. “The answers from AI-powered tools are only as good as the questions being asked, and sometimes people don’t know what they’re missing. That’s where working with a professional still adds tremendous value.” 

Tech applications allow advisor and client to have much more flexibility in their collaborations, says Jessica Jones, senior financial advisor with BOK Financial, especially in communication and availability in a world that expects everything on demand. 

“However, it’s not all positive views from the advisor perspective,” says Jones. “The other side of tech advancements is that it is also providing clients with options such as “Robo Advisors” and the ability to use AI to build their own portfolios and seek advice. We see more and more that the younger generations are relying on tech and AI to provide financial and investment advice. In these instances, AI options don’t offer the personalized or industry tested solutions that an advisor would.”

In short, technology apps and AI cannot replace the human connection, although they help with accessibility. 

“There is something to be said for sitting down across the desk from your client and being able to listen to their tone, read their body language and see their face as they explain their goals, fears and needs,” says Jones. “As incredible as tech is and all that it has to offer, it is not providing the emotional connection so many clients desire.”

Symcox continues, saying reviews are mixed on fintech from the pros themselves.

“There are many advisors that definitely don’t feel that fintech options are good for their clients. Typically these concerns come from the erosion in potential income,” he shares. “There are a number of advisors and firms that have embraced fintech to enhance and augment services. I feel like this is the bulk of advisors — because they see the value of individuals and having access for advice with more efficient engagement.”