4 Ways to Hit Your Family Savings Goals in 2025

If you have a family, you likely have various savings objectives — such as saving for your child’s college education, setting aside funds for retirement, and budgeting for your next family trip.

There is no one-size-fits-all approach to family savings, but there are essential principles that can help steer your process. Financial experts and mothers share some advice to help you kickstart your savings journey.

Conducting a financial review of the past year can be the first step towards approaching family savings in 2025. Plan a financial review session with your partner or by yourself, and bring along your statements and account summaries. The objective is to assess your financial situation from the previous year to plan for the upcoming year.

Key aspects to focus on during your review include your income, expenses, and any significant life changes that may have affected your finances. Examples include relocations, job transitions, salary adjustments, or unexpected expenses. Be honest about your financial habits in 2024 and the reasons behind them.

Although this may not sound exciting, it doesn’t have to be overwhelming if you consider the bigger picture, as noted by Victoria McGruder, a CPA and founder of FinPowered Female in Washington, D.C.

“People often focus on the less enjoyable aspects of financial management,” McGruder explains.

She emphasizes the importance of not only mundane tasks like tracking your finances but also concentrating on the bigger picture and your motivations for budgeting. These overarching goals could include saving for a house, achieving financial stability, or ensuring a comfortable retirement.

If you have been struggling with living expenses or have faced multiple financial challenges this year, replenishing your emergency fund could be a family savings goal for 2025. Ideally, your emergency fund should cover three to six months’ worth of expenses.

Take this opportunity to determine the appropriate amount for your emergency fund in 2025, especially if your financial situation has changed. For instance, my emergency fund requirements will differ next year due to changes in my monthly expenses with my child attending a private school.

“Prioritizing the building of an emergency fund is essential because we want to rely on ourselves for financial support rather than financial institutions,” advises Rianka Dorsainvil, a CFP and owner of YGC Wealth in Washington, D.C., in an email interview.

Consider where you keep your emergency savings. A high-yield savings account could be a suitable option since it offers liquidity (easy access to funds with minimal consequences) and the potential to earn passive income through interest.

“The interest will compound over time and prove to be very advantageous,” Dorsainvil adds.

Reflect on the effectiveness of your money-saving approach this year. Did your budgeting system help you stay within your means? Did the accounts you utilized for saving money assist in earning interest and progressing towards your goals?

Brianna Jackson, a school counselor and travel agent in Pearland, Texas, can affirm the positive outcomes to both questions. As a mother of one, Jackson has a money management system that effectively supports her family’s savings. She automates her savings, allocating a portion of her income to her son’s UTMA account and directing other funds into retirement accounts like an IRA. Since her system is working well, she plans to maintain it in 2025.

However, Jackson is contemplating moving some of her funds into a high-yield savings account, as many still offer interest rates above 4% despite this year’s Fed rate cuts.

If you need assistance in developing a money management system, consider engaging a fee-only financial advisor to help establish a solid foundation.

While all your saving goals hold significance, prioritizing them can be beneficial. It’s usually wise to place your emergency fund at the top of the list to prevent an unforeseen expense from derailing your finances. Following that, ensure you are taking advantage of any retirement saving matches from your employer, such as a 401(k) match.

“You need to secure your financial foundation first. While you may have goals for a vacation or a new home, I advise against neglecting the importance of prioritizing and saving for your retirement,” Dorsainvil recommends.

Next in line of priorities could be tackling high-interest debt while saving. If your debt has become overwhelming, you might consider a balance transfer, which involves transferring your debt from a high-interest credit card to one with a lower APR. This can help you save on interest and potentially pay off debt more quickly.

If you find yourself feeling overwhelmed after reading these tips and mapping out your family savings goals, remember that it’s better to start with what you have than not start at all.

“The sooner you begin, the easier it will become,” McGruder advises. “Delaying saving for retirement, delaying saving for your children’s education or any other goals will only make it more challenging in the long run.”