Account Types on Mobile
When adding your accounts in YNAB, it's important that they're set up as the correct account type because the type will indicate how they behave in your budget.
During account set up, you'll see two types of accounts: Budget Accounts and Tracking Accounts.
The dollars in Budget Accounts are included in your budget (which you can tell from our super-clever naming scheme). These accounts should also include credit accounts from which you spend, so they're included in your budget as well.
There are five Budget Account options to choose from:
- Savings (It's important to Budget Your Savings!)
- Credit Card (These are so special they require their own section. Yep. They're that special. Check out this section of our Help Docs for all the special..ness! 😆)
- Line of Credit
Tough decision? Here's a little secret: Checking and Savings accounts work exactly the same. They are accounts that typically have a positive balance because they're where you store money.
Similarly, there's no difference between Credit Card and Line of Credit. These accounts typically have a negative or zero balance because funds spent from these accounts become debt.
Cash accounts represent actual bills and coins. There's only one difference between a Cash account and Checking or Savings account: in a Cash account, all transactions are cleared by default.
What about PayPal, Venmo, or Cash App?
If you have a PayPal account where you receive, store, and spend funds, choose Checking. However, if you have a PayPal Credit account, you would choose either Credit Card or Line of Credit. And while we're at it, if you simply use PayPal as a faster way to checkout and send/receive money in your other accounts, you don't even need to add it at all!
The dollars in tracking accounts are not included in your budget. Adding these accounts to your budget allows you to track their balance (we told you we were clever at naming things!) Since the balances in these accounts don't impact your budget, you don't need to add any of them. But you can if you want to—there are two options:
- Asset: investment accounts or the value of your home
- Liability: mortgages and other loans
Perhaps you've already heard of the YNAB Reconciliation Dance. It's a pretty big deal here. Think Gangnam Style (remember 2012?) for budgeting.💃🏻
Basically, because you use your budget to make spending decisions, your records in YNAB need to match your bank’s records — not just once a month, but every single day, as you make spending decisions based on that data. We call this reconciling, and you'll need to do this on the web app. (Reconciling isn't yet available in the mobile app.)