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Updates and upgrades may sound like the same thing, but there are important differences you should understand.
A software update (also sometimes called a software patch) is a free download for an application or software suite that provides fixes for features that aren't working as intended or adds minor software enhancements and compatibility.
This number helps track iterations of the software, including updates and upgrades.
It is actually represented as a series of numbers separated by periods.
The leftmost number in a software's version number represents major upgrades (in some cases a free updates may increase this version number) to the software.
For example, going from version 1.0 to 2.0 is a major update.
If you bought your software recently, and an upgrade is released soon after that, most personal finance software companies will offer the upgrade to the latest version for free.
An update can also include driver updates that improve the operation of hardware or peripherals, or add support for new models of peripherals.
A software upgrade is a new version of your software that offers a significant change or improvement over your current version.
If you use software for your finances, you have probably encountered suggestions to update, patch or upgrade that software.
You may have also been offered updated drivers for your hardware, such as printers, too.These upgrades may also have "version names" associated with them (e.g., for operating systems, "Windows 10" or "OS X Mavericks" are version names).