By using categories in Quicken, you can track from where your money is coming and to where it is going. Categories track deposits, expenditures, and accounts. In short, categories help you view or organize your personal finances.
Quicken’s Category list provides commonly used categories that you can customize according to your requirements.
To view, add, edit, merge, and delete categories, go to the Tools menu and select the Category List.
By using Tags in Quicken, you can classify transactions. Assume that you want to group transactions for a specific event such as Journey Expenses. Create a tag with that name and tag all the related transactions. When you want to see the total cost of your Journey Expenses, you can customize the transaction report to include transactions with the Journey Expenses tag.
To view, add, edit, merge, and delete categories, go to the Tools menu and select the Tag List.
Note: The primary difference between categories and tags is that tags group transactions without categorizing them as income or expense.