AI-Driven Personal Finance Management System Using Machine Learning and Flask

Abstract

Abstract In today’s fast-paced digital world, effective personal finance management has become a major challenge for individuals due to multiple income sources, diverse expenses, and limited financial awareness. Most existing tools only provide basic expense tracking and lack personalization, automation, and intelligent guidance. To address these limitations, this project proposes an AI-Driven Personal Finance Management System that combines rule-based logic and machine learning (ML) techniques to simplify financial planning and decision-making. The system allows users to record income and expenses, categorize them automatically, predict future budgets, and receive personalized investment recommendations such as SIPs, Fixed Deposits (FDs), Recurring Deposits (RDs), and Mutual Funds. Using machine learning models like Linear Regression, the system forecasts future spending trends, while rule-based eligibility checks help determine suitable investment options. Developed using Python, Flask, and scikit-learn, the proposed system provides a user-friendly dashboard with secure login, real-time alerts, and savings goal tracking. It enhances financial literacy by delivering data-driven insights and promoting better money management habits. The project demonstrates how artificial intelligence can transform personal finance management from manual, time-consuming processes into automated, intelligent, and personalized financial assistance for every user. Keywords: Artificial Intelligence (AI), Machine Learning (ML), Personal Finance Management, Expense Prediction, Investment Recommendation, Rule-Based System, Linear Regression, Financial Analytics, Flask Framework, Automation, Data-Driven Decision Making