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
- 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.
Credit Card (typically used for everyday spending) and Line of Credit accounts (a flexible loan from the bank) typically have a negative or $0.00 balance, and funds spent from these accounts become debt. If you use a credit card, it's important to select the Credit Card account type because of how these accounts work in your budget.
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 Line of Credit. If you have a PayPal Credit Card, you would choose Credit Card. And while we're at it, if you simply use PayPal as a faster way to check out 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
If you can't decide whether to add a loan, read more about tracking loans to learn how you can handle these.