Creating funds is a great way to track your savings for an upcoming expense or goal. (annual property tax payment , the holidays, vacation, etc.). Right now you cannot create a fund using the iOS app. That's something that will have to be done from a computer at everydollar.com on your computer. Check out the details on how to create a fund here.
Once you've set up the fund on your computer you're ready to start using it on the iPhone app as well. Remember, you don't want to add any positive transactions to the fund to show that you have saved the money. Whatever is in the "Planned" amount will automatically be added to the fund balance. The only reason you ever want to add a transaction to a fund is an expense transaction if you are withdrawing money from it.
EveryDollar then carries your fund balance over to the next month when creating next month's budget.
* PLEASE NOTE: The "Remaining" amount for your funds on the iPhone app will display the remaining amount for this month. Basically it will show you the amount that you have planned to save this month. This differs from the website. The website will show you the total fund balance in the remaining amount. You can see the fund balance in the iPhone app simply by tapping on the fund item.