As Americans deck the halls and\u00a0tackle gift lists, the holiday season\u00a0also\u00a0offers an opportune moment to reflect on\u00a0personal finances.<\/p>\n
Economic uncertainty\u00a0seemed to\u00a0define\u00a02025.\u00a0Rising tariffs<\/a>\u00a0fueled\u00a0volatility,\u00a0a\u00a0cooling job market<\/a>\u00a0challenged\u00a0workers, and\u00a0inflation\u00a0stuck around<\/a>. Nevertheless,\u00a0an AI investment boom<\/a>\u00a0and\u00a0high-income households\u2019\u00a0strong spending<\/a>\u00a0powered growth in select sectors.\u00a0For\u00a0others,\u00a0however,\u00a0an affordability crisis<\/a>\u00a0continued to mount.<\/p>\n If\u00a0you\u2019re\u00a0looking to finish the year on track, experts\u2019\u00a0year-end\u00a0financial tips can help set the stage for a strong start to 2026.<\/p>\n How much will groceries cost this week? Use this Grocery Price Tracker.<\/a><\/p>\n The\u00a0end of the year\u00a0is\u00a0often\u00a0a\u00a0good time\u00a0to reflect on what went well in 2025 and what did not.<\/p>\n Jack Howard, head of money wellness at Ally Financial, said she understands that some Americans are caught in a doom spiral, thinking the economy is \u201ccrazy,\u201d inflation is high, and they\u2019ll\u00a0never retire.<\/p>\n \u201cYou could have a different thought: 2025 was a challenging year for a lot of people. I did set\u00a0goals,\u00a0and I\u00a0didn\u2019t\u00a0achieve them, but\u00a0I\u2019m\u00a0really proud\u00a0I set goals, and moving forward,\u00a0I\u2019m\u00a0going to work toward them,\u201d\u00a0Howard said.<\/p>\n She suggests reviewing your spending and, if needed,\u00a0adjusting <\/a>your budget<\/a>\u00a0to better align with your values.<\/p>\n It\u2019s\u00a0also wise to review\u00a0your\u00a0emergency fund<\/a>.\u00a0Replenish\u00a0the fund\u00a0if you\u00a0pulled\u00a0from\u00a0it\u00a0this year, and consider increasing\u00a0it if your expenses have risen.\u00a0You\u2019ll\u00a0also want to check in on any debts.\u00a0Ensure\u00a0you know\u00a0what\u2019s\u00a0owed\u00a0and\u00a0are comfortable\u00a0with repayment plans.<\/p>\n December is\u00a0also an opportune time to\u00a0review your estate plan<\/a>, powers of attorney and insurance coverage.<\/p>\n Story continues below.<\/p>\n While Tax Day is still months away, preparation can start now.<\/p>\n Ensure your withholdings are correct\u00a0to avoid\u00a0owing\u00a0a large\u00a0amount\u00a0to the IRS. Track expenses and organize receipts for deductible purchases. If you plan to itemize, consider making charitable donations before Dec. 31, but there may be\u00a0reasons to hold off<\/a>\u00a0on year-end giving, depending on your situation.<\/p>\n Make the\u00a0most of\u00a0tax-advantaged accounts.\u00a0Spend down\u00a0any Flexible Spending Account funds before they expire\u00a0and consider contributing to a\u00a0529 education savings plan or\u00a0a similar alternative<\/a>.<\/p>\n Story Continues <\/p>\n If you have taxable investments, you may consider\u00a0harvesting tax losses<\/a>\u00a0or\u00a0selling\u00a0down\u00a0investments\u00a0at a loss to offset capital gains taxes. Miklos Ringbauer, founder of\u00a0the accounting and tax strategy firm\u00a0MiklosCPA, said\u00a0it\u00a0is\u00a0\u201ca very big misconception\u201d that the strategy is only for the wealthy.<\/p>\n To ensure a smooth tax season, Ringbauer recommends maintaining records of all financial activities and consulting with a professional before making any major decisions.<\/p>\n \u201cYou don\u2019t need five times a year, but check in once every year, or once every couple of years, with a reputable accountant who you know and trust so they can give you the support, especially after there\u2019s major tax legislation,\u201d Ringbauer said.<\/p>\n Story continues below.<\/p>\n If\u00a0you\u2019ve\u00a0got extra cash, the year\u2019s end is also\u00a0a good time\u00a0to\u00a0max\u00a0contributions to\u00a0retirement accounts<\/a>.<\/p>\n \u201cI want you to put as much money into your 401(k) as\u00a0possible,\u00a0and your 59-and-a-half-year-old self will thank me,\u201d said\u00a0Judith Leahy, a senior wealth advisor at Citi Personal Wealth Management.<\/p>\n In 2025,\u00a0individuals\u00a0can contribute up to\u00a0$23,500\u00a0to their 401(k) plans. IRA contributions are capped at\u00a0$7,000\u00a0for those under 50.\u00a0Those aged 50\u00a0and over\u00a0can contribute $8,000.<\/p>\n If you have traditional retirement accounts,\u00a0depending on your situation<\/a>,\u00a0Leahy said\u00a0you may\u00a0want to\u00a0consider\u00a0a Roth\u00a0conversion or\u00a0moving traditional pre-tax retirement savings to a Roth IRA.<\/p>\n Those over 73\u00a0will also\u00a0need to ensure\u00a0they\u2019ve\u00a0withdrawn\u00a0the required minimum distribution<\/a>\u00a0from their IRA,\u00a0401(k), and some other plans.\u00a0Failure to do so could result in\u00a0a\u00a025%\u00a0tax penalty\u00a0on the amount not withdrawn.<\/p>\n \u201cGet that done, or you get the penalty,\u201d Leahy said. \u201cIf you don\u2019t need the money, make sure you\u2019re doing a charitable\u00a0distribution\u00a0so that money can then go to the charity of your choice and you\u2019re not paying taxes on it.\u201d<\/p>\n While\u00a0you\u2019re\u00a0at it, ensure the beneficiaries on those accounts are up to date.<\/p>\n Once\u00a0you\u2019re\u00a0feeling\u00a0confident about 2025,\u00a0it\u2019s\u00a0time to prep for 2026.<\/p>\n Set new\u00a0financial\u00a0goals and schedule regular check-ins\u00a0to track progress.<\/p>\n You may also take time to review how new legislation, like\u00a0the One Big Beautiful Bill Act<\/a>,\u00a0will affect\u00a0you.\u00a0USA TODAY broke down\u00a0the bill\u2019s winners and losers<\/a>.\u00a0The changes are likely to\u00a0help\u00a0high-income earners,\u00a0families with children, car buyers, those with overtime pay, and tipped workers.\u00a0Those making less than $50,000, SNAP and Medicaid recipients, those with student loan debt and undocumented people stand to\u00a0benefit\u00a0less.<\/p>\n Reach Rachel Barber at\u00a0rbarber@usatoday.com<\/a>\u00a0and follow her on X\u00a0@rachelbarber_<\/p>\n