Glossary
Transaction categorization
Transaction categorization assigns each transaction to a spending or income category such as groceries, rent, utilities, dining, subscriptions, or transfers. Accurate categories make budgets useful because they turn raw account activity into patterns you can review and act on.
Categorization is the bridge between imported transactions and a budget that can be trusted. A card charge by itself only says money moved. A category explains why it moved and whether it belongs in needs, wants, savings, income, transfers, or a custom planning bucket.
Automation helps when merchants are predictable. A grocery store can default to groceries, a streaming service can default to subscriptions, and payroll can default to income. Review workflows still matter because merchant names can be ambiguous, transfers can look like expenses, and household categories change over time.
Nethaven pairs transaction categories with rules and review queues so repeated spending becomes easier to classify without hiding exceptions. Better categories improve budget reports, subscription tracking, cash-flow reviews, and the monthly routine around money.
Use this in Nethaven
This term connects directly to how people review money in the app. See budgeting features for the related workflow.
Explore Budgeting featuresRelated terms
Cash flow
Cash flow is the movement of money into and out of your accounts over a period of time. Positive cash flow means income exceeded spending; negative cash flow means spending, debt payments, transfers, or investments exceeded incoming money.
50/30/20 rule
The 50/30/20 rule is a budgeting framework that splits take-home income into needs, wants, and savings or debt payoff. A common version assigns 50% to needs, 30% to wants, and 20% to savings, but the ratios are best treated as a starting point.
Sinking fund
A sinking fund is money set aside gradually for a known future expense. Instead of treating car insurance, holiday travel, annual subscriptions, or home repairs as surprises, you save a smaller amount each month before the bill arrives.