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Categorization

Categorization helps you understand where your money goes. Every expense or deposit can be assigned a category — Groceries, Rent, Wages, and so on — so reports and budgets reflect real spending patterns.

Big Picture Money uses several layers to suggest categories automatically. You stay in control: your choices always win.

How categorization works

When a transaction is created or imported, the app tries to assign a category in this order (highest priority first):

  1. Your rules — patterns you define (for example, "description contains STARBUCKS → Restaurants")
  2. Your learned aliases — when you categorize a payee once, the app remembers for similar descriptions
  3. Merchant recognition — the shipped Merchant Recognition database matches common merchants and MCC codes
  4. Manual assignment — you pick a category inline in the register

If nothing matches with enough confidence, the transaction appears in the Review queue until you confirm or change the suggestion.

What you can do

ActionWhere
Pick a category on a transactionTransaction register — Categorize a transaction
Create auto-categorization rulesCategories & Rules — Create a categorization rule
Add or edit categoriesCategories & Rules — Add a category, Edit a category
Work through uncertain itemsReview queue — Work the review queue
Add cross-cutting labelsTags — Tag a transaction
Split one purchase across categoriesSplit a transaction

Why it matters

  • Reports group spending by category
  • Budgets track progress against category targets — see Budgets
  • Search and filters let you find all vacation-tagged or grocery transactions quickly

The app shows why a category was chosen (for example, "Matched rule: Starbucks → Restaurants") so you can trust or override the suggestion.