The investing information presented here is solely for educational purposes. NerdWallet, Inc. does not offer advisory or brokerage services and does not recommend specific stock, security, or investment purchases. For families, there are multiple savings goals such as funding a child's college education, saving for retirement, and budgeting for vacations. There isn't a one-size-fits-all approach, but some fundamentals can guide the process. Finance professionals and moms share valuable tips to get started.

Key Tips for Family Savings in 2025

Plan a Money Date to Assess Your Finances

Doing a financial "year in review" can be the first step. Set up a money date with your partner or go solo and bring along statements and account snapshots. Focus on aspects like income, expenses, and major life shifts that impacted finances in 2024. Be honest about financial habits. As Victoria McGruder, a certified public accountant and founder of FinPowered Female in Washington, D.C., says, "People spend a lot of time on the non-fun elements of financial management, but looking at the bigger picture makes it less dreadful." The goal is to know how to move forward in 2025.Another important aspect is to be aware of the impact of different life events on finances. For example, a move, job change, pay increase, or emergency expense can all have an effect. By assessing these factors, you can make more informed decisions about family savings.

Replenish Your Emergency Fund

If the cost of living has been tough or you've faced financial challenges this year, replenishing the emergency fund should be a priority in 2025. The ideal emergency fund should cover three to six months' worth of expenses. Consider calculating the appropriate amount based on your changed financial circumstances. For instance, if your monthly expenses have increased due to your son attending a private school, your emergency fund amount will need to adjust.Rianka Dorsainvil, a certified financial planner and owner of YGC Wealth in Washington, D.C., emphasizes the importance of having an emergency fund. "It's crucial to prioritize building an emergency fund. We want to be able to borrow from ourselves rather than a financial institution." Additionally, think about where to place your emergency savings. A high-yield savings account is a good option as it is liquid and allows you to earn passive income through interest. The compounding effect of this interest over time is highly beneficial.

Evaluate Your Money Management Systems

Reflect on the effectiveness of your money-saving approach this year. Did your budgeting system help you stay within your means? Did the savings accounts you used help you earn interest and move closer to your goals? Brianna Jackson, a school counselor and travel agent in Pearland, Texas, has a successful money management system. She automates her savings, with a portion going into her son's Uniform Transfer to Minors Act (UTMA) account and other amounts directly into retirement accounts like an IRA. Since it's working for her, she doesn't plan to change it in 2025.However, she is considering adding some money to a high-yield savings account, as many still offer interest rates above 4% despite Fed rate cuts. If you need help developing a money management system, consider using a fee-only financial advisor to lay the groundwork.

Set a Hierarchy for Your Family Savings Goals

All savings goals are important, but prioritizing them is helpful. The emergency fund should typically be at the top to avoid unexpected expenses derailing other finances. Next, ensure you're getting any retirement saving matches from your employer, such as a 401(k) match.Rianka Dorsainvil advises, "You have to put your financial oxygen mask on first. While there are goals for vacations and a home, don't overlook prioritizing and saving for retirement." After that, focus on paying down high-interest debt while saving. If debt has accumulated, a balance transfer to a card with a lower APR can help save on interest and pay off debt faster.Remember, it's better to start with what you have than not start at all. As McGruder says, "The earlier you begin, the easier it will be. The longer you delay saving for retirement or your kids' college education, the more difficult it will be to achieve those goals."