Best YNAB Alternative: Cognito Money is the best privacy-first alternative to YNAB and Monarch Money. Your financial data stays on your device—not in the cloud. It includes bank imports (CSV, OFX, Excel), AI insights, and works fully offline. No Plaid. No data sharing. Free tier available, or $29/year for advanced features.
Why is Plaid a privacy risk?
Plaid stores your bank credentials on their servers and sells anonymized transaction data to lenders and credit bureaus. When you connect YNAB or Monarch Money to your bank, your data flows through Plaid first—a third party you didn't choose.
The data path looks like this: Your Bank → Plaid → YNAB/Monarch
This creates several risks:
- Your credentials are stored on Plaid's servers
- Plaid monetizes transaction patterns through data partnerships
- When Plaid has outages, your budgeting app stops working
- You have no visibility into who accesses your data
In 2024, widespread Plaid outages left users unable to sync despite stable bank connections. Your budgeting shouldn't depend on a third party's uptime. See our guide to budget apps that work without Plaid.
What is local-first budgeting?
Local-first means your financial data is stored on your device's hard drive, not on cloud servers. As the Electronic Frontier Foundation recommends, keeping sensitive data local reduces exposure to breaches. With Cognito Money, there is no "server version" of your data—staff cannot access it because it doesn't exist anywhere but your computer.
Key differences from cloud apps:
- All transactions stored in a local database file
- Works 100% offline—no internet required
- You control imports via CSV, OFX, or Excel files
- Backups are files you own and store wherever you want
How does Cognito Money compare to YNAB and Monarch Money?
Cognito Money wins on privacy, cost, and offline capability. YNAB and Monarch win on automatic syncing convenience. Here's the full comparison:
| Feature | Cognito Money | YNAB | Monarch Money |
|---|---|---|---|
| Data Storage Location | Local device only | Encrypted cloud servers | Encrypted cloud servers |
| Bank Sync Method | Manual imports (CSV, OFX, Excel) + 15+ presets | Plaid aggregation | Plaid aggregation |
| Monthly Cost | Free (Standard: $29/year) | $15/month | $12/month |
| Import Formats | CSV, OFX, QFX, Excel | Plaid only | Plaid only |
| Offline Functionality | Full (all features work offline) | Limited (read-only offline) | Limited (read-only offline) |
| Data Access by Staff | None (impossible—local only) | Read access possible (encrypted) | Read access possible (encrypted) |
| AI Insights | Yes (Gemini 2.5 Flash) | Yes (cloud-based) | Yes (cloud-based) |
| Receipt Scanning | Yes (with itemization) | Yes | Yes |
| Financial Reports | Yes (income statements, balance sheets, cash flow, tax summary) | Yes | Yes |
| Budget Creation | Yes | Yes (core feature) | Yes |
| Goal Tracking | Yes (unlimited goals, progress bars) | Yes | Yes |
| Custom Categories | Yes (unlimited, colors/icons) | Yes | Yes |
| Auto-Categorization | Yes | Yes | Yes |
| Third-Party Access Risk | None | Plaid has data | Plaid has data |
| Privacy Transparency | High (no cloud = no data collection) | Medium (see Plaid data terms) | Medium (see Plaid data terms) |
How much does Cognito Money cost vs YNAB?
Cognito Money is free for core features, or $29/year for advanced imports. YNAB costs $180/year. Monarch Money costs $144/year.
- Cognito Money: Free tier with full budgeting; $29/year for bank imports and AI features
- YNAB: $15/month ($180/year)
- Monarch Money: $12/month ($144/year)
Over three years, Cognito Money saves you $432–$540 compared to YNAB or Monarch.
What happens if a budgeting app gets hacked?
If Cognito Money's servers are breached, your financial data is safe—because it's not stored there. Your transactions live on your device only.
If YNAB or Monarch is breached:
- Attackers could access encrypted transaction history
- Plaid tokens may be compromised
- Email, password hashes, and subscription data exposed
If Cognito Money is breached:
- No transaction data exists on servers to steal
- No bank credentials stored
- Maximum exposure: your account email (if subscribed)
Local-first architecture means less attack surface.
How does Plaid make money from your data?
Plaid charges apps per connection AND sells anonymized transaction insights to lenders, credit bureaus, and fintechs.
Their revenue streams:
- API fees from YNAB, Monarch, and other apps
- Data products sold to lenders and credit bureaus
- Direct lending partnerships
This incentivizes Plaid to collect more data and retain it longer. YNAB and Monarch use Plaid because it's convenient for them—not because it's better for your privacy. For former Mint users, see our Mint alternatives guide.
What are the downsides of local-first budgeting?
You need to import transactions manually—about 2-3 minutes per month. If you want fully automatic daily syncing, cloud apps are more convenient.
Other considerations:
- Import frequency: Monthly imports instead of automatic sync. Most users import when reconciling their bank statement.
- Bank support: 15+ bank presets cover Chase, Bank of America, Wells Fargo, Citi, and more. Less common banks may need manual CSV formatting.
- Multi-device: Data lives on one device. Use backup/restore to sync between computers.
For most users, 2-3 minutes monthly is a worthwhile trade-off for complete privacy.
Which budgeting app is best for you?
Choose Cognito Money if you value privacy, cost savings, or offline capability. Choose YNAB or Monarch if automatic syncing is your top priority.
Best for privacy
Cognito Money — No cloud storage, no third-party data access
Best for automatic syncing
YNAB or Monarch — Daily auto-sync (depends on Plaid reliability)
Best for saving money
Cognito Money — Free tier or $29/year vs $144-180/year
Best for offline use
Cognito Money — Full functionality without internet
Best for financial reports
Cognito Money — P&L, balance sheets, cash flow, tax summaries
How do I switch from YNAB to Cognito Money?
Export your YNAB data as CSV, import it into Cognito Money, and set up a monthly import routine. Takes about 15 minutes total.
- Export from YNAB: Download your transaction history as CSV
- Import to Cognito: Use CSV import with auto-categorization
- Set up categories: Create custom categories with colors and icons
- Monthly routine: Export from bank → Import to Cognito (2-3 min/month)
Your existing data transfers over. Cognito's auto-categorization handles most transactions automatically.
Should I switch from YNAB to Cognito Money?
Yes, if you value privacy, want to save money, or need offline capability. No, if automatic daily syncing is more important than privacy.
The core difference is architectural:
- YNAB/Monarch: Convenience first, privacy handled by third parties
- Cognito Money: Privacy first, convenience through simple monthly imports
If you've experienced Plaid outages, worry about data breaches, or want to stop paying $15/month—Cognito Money is the logical alternative.
Sources
- Plaid Trust Center — Data retention policies
- YNAB Privacy Policy — Plaid integration details
- Monarch Privacy Policy — Data sharing practices
- Cognito Money Privacy — Local-first architecture