AI-Powered Spending Habits Coach

The increasing adoption of digital payment systems has significantly reduced transactional friction, often leading to

diminished financial awareness and impulsive spending behavior. Existing personal finance applications primarily provide

expense tracking and retrospective visualization, offering limited real-time behavioral intervention. This paper presents the

design and implementation of an explainable artificial intelligence-based financial nudging system that transforms passive

budgeting tools into proactive behavioral coaching platforms. The proposed framework integrates structured rule-based decision

modelling with context-aware conversational feedback to deliver categorized, timely, and personalized nudges aligned with

behavioral economic principles. A full-stack web architecture is implemented to support transaction processing, budget

evaluation, and dynamic nudge generation while preserving data privacy through secure authentication and controlled storage

mechanisms. The study focuses on system design, decision formulation, and functional validation rather than longitudinal

behavioral experimentation. The results demonstrate the feasibility of operationalizing explainable AI techniques for financial

habit intervention within a deployable application framework, establishing a foundation for future empirical evaluation and

adaptive optimization