Smart Buying
Microsoft Money 2006: Tweaks and Polish
Microsoft rolled out the latest version of its personal finance software today. We tested it out to see if it's worth another trip down the software aisle.
By Dan Rutherford
July 5, 2005
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The fireworks may be over, but the first salvo in this year's personal finance software showdown has just been launched.
Microsoft's Money 2006 was released today. Quicken is expected to release it's latest version around August 1.
Don't expect either brand to dazzle long-time accounting software users. Both products have matured beyond leaps-and-bounds advances.
Money's latest offers a few incremental improvements, a couple of new conveniences and some attractive value-added software offers (for Premium buyers). And if last year's release of Quicken 2005 is any indication of what's to come, then you can expect the same sort of tweaks and polish.
In the Money
Money 2006 comes in four versions:
- Standard. Offers basic banking and budgeting applications; $29.95 before a $5 mail-in rebate.
- Deluxe. All the standard features plus some calculators, debt management and tax tools; $59.95, $20 mail-in rebate.
- Premium. All of the above and a complement of other financial software and services, such as H&R Block's Deduction Pro and a year's worth of credit reporting from Experian; $79.95, $30 mail-in rebate.
- Small Business. Everything in Premium and some strictly business applications too.
We tested the 2006 Premium version. It offered some nice upgrades to its 2005 predecessor, but if you purchased last year's package, there isn't enough here to justify a trip back down the software aisle. On the other hand, if it's been more than a few years since you installed your last Money program, make the investment. But be prepared to upgrade again in two years.
That's because the 2006 version, like 2005, does an excellent job of automatically synchronizing your accounts. No more jumping from one site to another downloading your latest transactions. Money does it all at start-up.
The 2006 version also has a convenient centralized bill-payment feature for multi-checking-account families - say, a husband and wife with individual and joint household accounts. Want to pay the daycare bill from mom's account, the car payment from dad's and the electric bill from the household account? No problem: You simply select the appropriate bill-payment enabled account, enter the amount due and submit.
But all these handy services only work until 2008. You can still use the program after that, but you'll have to revert to downloading your own data or entering the information manually, and going back to you banks' Web sites to pay bills.
Anne Quaranta, senior product manager for Microsoft Money, says the two-year limit is to ensure that both Microsoft and your bank are up to date on the latest and greatest technologies, both in terms of data delivery and security. Other personal finance software providers have similar policies, she says.
Which brings up another issue: Security. For the online services to work, you have to set up a Microsoft .Net Passport account. You'll then use your .Net user name and password to log into the software. Your reward is one user name and password for access to all your accounts. The risk is a looser grip on your account numbers and user names. Microsoft spokespeople stressed that account information is not stored on their servers. Instead, data is controlled either by your financial institution or Yodlee, a company that specializes in secure account aggregation services.
When this service was first rolled out in 2005, security may have been a concern, but after 40 million credit card numbers were hacked last month, some users might be a bit more apprehensive about turning over the keys to their financial lives. If you're one of them, you can opt out during the installation process. But by doing so you also say goodbye to the centralized bill payment and account synchronization features.
Outside the box
If you're familiar with MSN Money, then getting around in the software should be a snap. The top and left navigational structures are nearly identical. In fact, because Money 2006 is largely Web driven, many of the planning tools and content are available free on MSN. For example, the software touts a new ETF center, but it is merely material pulled in from the Web site.
Software users can also sign into the MSN Money Web site (using the same .Net Passport password) to track account balances, portfolio performance or bill payments -- a nice, but hardly unique, perk.
What is unique to the software is Spending Tracker. This is a thermometer-like look at how you're spending your money. You choose the spending categories to follow and your budget limits. Then, throughout the month, you can watch as your spending approaches (or exceeds) the mark. The 2005 version offered this feature too, but users could only track three spending categories. Version 2006 users can set up as many categories as they like.
If you're new to financial software, then Money 2006 is a comfortable choice. Set up is easy if you have all the PIN numbers and passwords for your electronic accounts. Thousands of financial institutions have signed on to work with Money, so chances are your bank and brokerage are included. The software also features robust help features, including introductory videos and, new this year, toll-free telephone support.
But if you're a Quicken user who's thinking about making the switch, hold on for a few weeks, until we get a chance to put Quicken 2006 through its paces.