Which option would be an effective way to track savings for a down payment?

Using a budgeting app is an effective way to track savings for a down payment because these apps are specifically designed to help users monitor their income, expenses, and savings goals in a clear and organized manner. A budgeting app allows individuals to set specific savings targets for their down payment and offers features such as tracking progress toward that goal, providing insights into spending habits, and suggesting areas for potential savings.

With a budgeting app, users have the flexibility to input real-time data and make adjustments to their savings strategies as needed. They can also categorize their expenditures to identify discretionary spending that could be redirected toward their down payment savings. This real-time tracking and analysis makes it easier to stay on course toward achieving financial goals, such as a home purchase.

In contrast, an investment portfolio would primarily focus on investments rather than direct savings for a specific goal, while credit card statements reflect past spending rather than actively aiding in saving. Tax returns, while important for understanding overall financial position, are not tailored tools for ongoing savings tracking.