20 Financial Innovations You Can’t Afford to Ignore

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The way we manage our money has changed profoundly in recent years. A raft of entrepreneurs has melded vision, technology and start-up capital to come up with innovations that are helping us save, spend, invest and retire smarter. Here are 20 of our favorite financial innovations. Some are new. Some are tried, true and familiar. Chances are they're transforming your financial life.

Is your favorite financial innovation missing from the list? By all means, speak up. Make your pitch in the reader comments field below, or share your thoughts on Kiplinger’s Facebook page. The slide show begins with the navigation below.

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20 Financial Innovations You Can’t Afford to Ignore

Leisure Runner Up: Netflix

Founded in 1997, Netflix introduced the model of flat-fee, unlimited DVD rentals without late fees -- and almost single-handedly killed the video store. Starting with DVDs ordered online and delivered by mail, it introduced unlimited Internet video streaming in 2008. Competitors are already nibbling, but Netflix plans to outspend them.

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Leisure Runner Up: Netflix

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20 Financial Innovations You Can’t Afford to Ignore

Leisure Runner Up: ITA Software

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MIT computer scientists started this company in 1996 and created QPX, a program that made airfare shopping and pricing more efficient and consumer-friendly. It’s used by airlines as well as online travel sites Orbitz, Kayak and Bing Travel. Google acquired the company in April.

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Leisure Runner Up: ITA Software

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20 Financial Innovations You Can’t Afford to Ignore

Leisure Runner Up: Match.com

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The site, owned by IAC/InterActiveCorp., pioneered online dating in 1995 and revolutionized the way couples get together. Members, who pay as much as $35 a month, create a profile, search for a match and start a conversation. A recent survey conducted for Match.com shows that almost one-fifth of recently married respondents found their spouse online.

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Leisure Runner Up: Match.com

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20 Financial Innovations You Can’t Afford to Ignore

Kiplinger’s Favorite Spending Innovation: Groupon

Groupon, the deal-of-the-day Web site, sends out more than 900 daily offerings of deep discounts to local businesses. Why is it successful? One simple reason: Everybody loves a bargain. The fast-growing membership -- now at 70 million subscribers in 46 countries -- and spawning of copycat sites, such as LivingSocial, are proof that the concept has appeal.

Chicago-based Groupon, started in 2008 by Northwestern University graduate Andrew Mason, has been called the fastest-growing company ever. It now has 6,000 employees worldwide, and first-quarter revenue was a whopping $644.7 million. Groupon just announced plans to go public.

The company is trying to capitalize on its popularity. Last year, Groupon started to personalize the deals that show up in your e-mail in-box, based on where you live and your buying history. In May, the company introduced GrouponNow -- instant deals via a mobile app -- in Chicago. If all goes well, more cities will follow.

- By Jessica L. Anderson

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Kiplinger’s Favorite Spending Innovation: Groupon

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20 Financial Innovations You Can’t Afford to Ignore

Spending Runner Up: eBay

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Started as an experiment by programmer Pierre Omidyar in 1995, eBay brought auctions online and became the world’s largest electronic marketplace. You can bid on items ranging from teapots to trucks, or use the Buy It Now feature to pay a set price. Daily deals offer discounts and free shipping on a variety of products.

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Spending Runner Up: eBay

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20 Financial Innovations You Can’t Afford to Ignore

Spending Runner Up: Craigslist

Classifieds were half-inch blurbs in the local newspaper until Craig Newmark started an e-mail list of San Francisco events in 1995. It spread to other cities and evolved into the go-to site for local classified ads for everything from job listings and housing to buying and selling anything you can think of. Users post 50 million ads each month to 700 local sites in 70 countries.

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Spending Runner Up: Craigslist

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20 Financial Innovations You Can’t Afford to Ignore

Spending Runner Up: TrueCar

The biggest concern for most people when shopping for a new car is how much to pay. Scott Painter launched TrueCar in 2008 to help you find out. Search for a car in your area and the Web site shows you a graph of what others are paying and what a good price is, plus the best local no-haggle price and info on incentives and fees.

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Spending Runner Up: TrueCar

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20 Financial Innovations You Can’t Afford to Ignore

Kiplinger’s Favorite Retirement Innovation: Brightscope

Brightscope.com provides free ratings and fee information on more than 55,000 401(k) plans. Founded in 2009 by brothers Mike and Ryan Alfred, the site empowers workers to discover the good, the bad and the ugly about their retirement plans. Employees can ask about fees and investment options, and plan sponsors gain leverage to negotiate lower prices with service providers.

The Alfreds view complaints from industry insiders about the rating system as proof that they have struck a nerve. The company makes money by selling analytical data to plan sponsors, asset managers and plan providers.

What's next? Brightscope recently unveiled a free search tool to let consumers find, compare and, eventually, rate financial advisers. The brothers, who hope to take their company public in a few years, think their latest innovation will top their first one.

- By Mary Beth Franklin

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Kiplinger’s Favorite Retirement Innovation: Brightscope

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20 Financial Innovations You Can’t Afford to Ignore

Retirement Runner Up: The Automatic 401(k)

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The majority of private employers now automatically enroll new workers in a retirement savings plan, and many enable workers to boost their contributions automatically over time. Propelled by pension reform legislation in 2006, age-appropriate target-date funds are now the most popular default investment.

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Retirement Runner Up: The Automatic 401(k)

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20 Financial Innovations You Can’t Afford to Ignore

Retirement Runner Up: Financial Engines

This online investment pioneer has been helping workers save for retirement since 1998. The firm, based in Palo Alto, Cal., provides guidance to do-it-yourself investors and offers managed accounts. Its latest innovation is a professionally managed program to turn 401(k) balances into steady payouts for life.

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Retirement Runner Up: Financial Engines

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20 Financial Innovations You Can’t Afford to Ignore

Retirement Runner Up: Fidelity's Income Strategy Evaluator

A new, free tool at Fidelity.com enables everyone, not just Fidelity customers, to estimate future retirement expenses and income. The robust tool recommends appropriate investment strategies to generate steady income (with or without using annuities) and provide growth to keep pace with inflation.

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Retirement Runner Up: Fidelity's Income Strategy Evaluator

Start Over

Slide Show

20 Financial Innovations You Can’t Afford to Ignore

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