1. Take a Thoughtful Look Back at Your Year of Spending
One of the most valuable steps you can take at year-end is reviewing how you spent your money throughout the year. Instead of thinking of this as a judgment exercise, think of it as an opportunity for insight. Your spending tells a story: what you prioritized, what surprised you, what changed, and what you might want to adjust going forward.
Where to Start
A great place to begin is by reviewing your transaction history through your Online & Mobile Banking, your debit card activity, any credit card statements, or budgeting tools you may use. Look for patterns, both expected and unexpected.
Consider asking yourself:
- What expenses have increased this year? Rising costs for housing, utilities, groceries, or childcare may reveal opportunities to adjust your budget.
- What areas were steady? Consistent spending on needs like transportation and insurance helps you understand your true baseline.
- What expenses could be reduced? Maybe you subscribed to a service you no longer use or frequently spent more than planned in a certain category.
- What were the “wins”? Celebrate areas where you stayed on track, reduced debt, or made progress toward savings goals.
Why This Matters
Getting a clear view of your spending helps you make intentional decisions for next year. It can also uncover habits you weren’t aware of, and highlight strengths you can build on.
2. Check In on Your Savings Goals and Retirement Contributions
Savings goals evolve as life evolves. Year-end is the perfect time to revisit what you set out to save and see how your progress aligns with your plans.
Review Your Emergency Savings
Financial experts often recommend having three to six months’ worth of essential expenses saved. Even if you’re not there yet, checking your current level helps you determine your next steps.
Ask yourself:
- Is my emergency fund growing, staying the same, or decreasing?
- Do I want to set a new goal for the upcoming year?
- Could small monthly adjustments help me reach my target?
Look at Short-Term and Long-Term Savings
Whether you’re saving for a home purchase, a family vacation, education expenses, or a major project, a year-end review helps you understand your progress and adjust timelines or contribution amounts if needed.
Don’t Forget Retirement Contributions
Even if retirement feels far off, the contributions you make today matter more than you may realize, thanks to the power of compounding over time.
Depending on your situation, you might:
- Increase your retirement plan contributions if you’re able.
- Ensure you’re receiving the full employer match, if offered.
- Use year-end bonuses or tax planning strategies to boost contributions.
- Review your investment allocations to make sure they reflect your current goals and risk tolerance.
Taking these steps now can improve your long-term financial health and give you greater confidence heading into the new year.
3. Review Your Credit Report for Accuracy and Peace of Mind
Your credit report plays a major role in your financial life. It influences your ability to secure loans, qualify for certain interest rates, or even rent housing. Because of this, it’s important to ensure that the information on your credit report is accurate and up to date.
What to Look For
When reviewing your report, pay attention to:
- Incorrect personal information such as name, address, or employer.
- Accounts you don’t recognize, which could be signs of identity theft.
- Closed accounts that are still showing as open.
- Outdated delinquencies or errors.
- Balance information or payment history that doesn’t match your records.
You are entitled to a free credit report from each of the three major credit bureaus, Equifax, Experian, and TransUnion, every year. You can request them individually or all at once.
Why This Step Matters
Catching errors early can help protect your credit score and quickly resolve issues before they complicate future financial decisions. Even small inaccuracies can affect your borrowing abilities, so this is an important habit to build into your year-end routine.
4. Consider Charitable Giving Before the Year-End Deadline
For many families and individuals, philanthropy is a meaningful way to close out the year. Whether you support a local nonprofit, a community organization, or a cause that’s close to your heart, charitable giving can enrich both your life and the lives of others.
Making the Most of Your Contributions
Before making year-end gifts, consider:
- Organizing your donation list and prioritizing causes that matter most to you.
- Check whether the organizations you support are tax-deductible, if that’s relevant to your financial planning.
- Looking into employer matching programs, which can amplify your impact.
- Setting up recurring donations if you want to support organizations throughout the year in a more structured way.
Giving back is not just about finances, it’s about helping strengthen your community, supporting your neighbors, and making a positive impact on the world around you.
5. Don’t Forget to Use Flexible Spending Account (FSA) Dollars
If you have an employer-sponsored flexible spending account (FSA), make sure you review your balance and use any remaining funds before they expire. Many FSAs have a “use it or lose it” policy, meaning unused dollars may not carry over into the new year.
Ways to Use Remaining FSA Funds
- Medical appointments and copays
- Prescription medications
- Vision or dental visits
- Over-the-counter health items
- Approved wellness expenses
Review your plan details to confirm eligible expenses and deadlines. A quick check now can ensure your hard-earned dollars don’t go to waste.
6. Set Intentional Goals for the Upcoming Year
Once you’ve reviewed this year’s financial picture, it’s time to think ahead. What do you want the next year to look like financially? Setting thoughtful goals can help guide your decisions and keep you focused throughout the year.
Examples of Strong Financial Goals
- Building or strengthening your emergency fund
- Paying down credit card balances or other loans
- Increasing retirement contributions
- Saving for a large purchase
- Creating a new household budget
- Establishing or updating estate plans
- Prioritizing financial education for yourself or your family
The best goals are realistic, measurable, and tied to outcomes that matter to you.
7. Celebrate Wins and Acknowledge Progress
Year-end financial checklists often focus on improvement—and while that’s important, it’s just as important to recognize what you’ve accomplished.
Maybe you saved more consistently than last year, reduced debt, paid off a loan early, or simply felt more confident navigating your finances. Every step forward is worth celebrating.
Taking a moment to appreciate your progress creates momentum, motivation, and a healthier mindset around financial planning.
Starting the New Year With Confidence
Financial wellness doesn’t require perfection. It’s built on awareness, planning, and the willingness to adjust as life shifts and grows. By taking a few thoughtful steps now, reviewing spending, checking savings, evaluating retirement contributions, assessing your credit report, and using year-end opportunities like charitable giving, you can position yourself for a more organized and confident start to the new year.
At Kennebec Savings Bank, we’re here to support your financial journey every step of the way. Whether you’re planning for the short term or preparing for the future, we’re committed to helping you make informed, empowered decisions that benefit you and your family.
Here’s to wrapping up the year strong, and stepping into the next with clarity, purpose, and confidence.
