Definition: Categories are at the center of financial software that offers strong reporting and budgeting capabilities. Categories are used to classify and sort income and expense so the software user can see this data in a meaningful way through reports and graphs. Doing a budget in financial software would be impossible without setting up categories.
Samples of categories are Groceries, Utilities/Cable, and Net Income.
Common Misspellings: catagory
Examples: I set up categories in Quicken to track my spending. I have categories for job-related expenses, auto expenses and household expenses.
