by Emily Hechler 
With the end of the year quickly approaching, now is a great time to review your current financial situation so you can prepare for holiday shopping, investing, and more. Reviewing your finances now can help you prepare for meeting your financial goals next year too.
End-of-Year Checkpoints
Anyone that follows a budget knows how difficult it is to stick with it month after month. When you made your budget for this year, did you include savings? Often times, this is the area that sees less money than we would like because we overspend in other areas. Follow these money checkpoints to get your savings back on track and prepare yourself for the future.
First, maximize your retirement contributions. If you are contributing to a 401(k) account, the money that goes in is pre-tax income. This means that your monthly salary decreases each pay period, so you’ll pay less in federal and state taxes when you file next spring. For 2024, the maximum amount an individual can contribute is $23,000. While most of us likely can’t contribute $23,000, contribute what you can. The earlier you invest money into your 401(k), the more time it has to compound and grow.
Maximize your HSA too. Just like a 401(k), the money you invest in your HSA, or Health Savings Account, is pre-tax. By contributing to this account, you are reducing your taxable income. HSAs allow you to save toward future qualifying medical expenses such as doctor’s visits, prescriptions, dental expenses, and more. The yearly contribution limits this year are $4,150 for single coverage and $8,300 for family coverage.
Open a High Yield Online Savings account. The money you have in savings can grow quicker with a High Yield Online Savings account. Our competitive rate is over 4x higher than the national savings average. Plus, you can easily manage your account online or with our app. Moving money into a savings account can get you back on track to your savings goals before the end of the year.
Check your beneficiaries on your accounts. The end of the year is a good time to look at your beneficiaries and how you have them listed on your accounts. Do you need to add or remove someone? Check their contact information too. My husband is a beneficiary in my accounts, and we recently moved, so I need to update his contact information!
Finally, modify your tax withholdings. Did you owe money to the IRS when you filed taxes last year? Or did you get a large tax refund back? Either way, adjusting your tax withholdings can help you get closer to breaking even when you file for 2025. This can help you have a more accurate estimate of how to create a budget for next year too.
Reviewing Your Finances before the End of the Year
After you’ve taken the above steps, it’s time to take a hard look at your current financial situation. You might already know areas that you excelled in this year, like contributing a healthy amount to your retirement savings or following your grocery budget. You might know areas where you didn’t meet your goals, such as rebuilding your emergency savings fund or not paying your credit card bill in full. Reviewing the past year can help you prepare for what’s to come over the next 12 months.
There are three main categories of finances to review – spending, savings, and your credit report.
Reviewing your spending will help you see how you actually use your money. I have a “fun money” section in my budget. If I were to review my spending, I’d likely find that I overspent in it for six months. Yikes! Downloading your eStatements from online banking will provide you a track record of your spending this year, whether it was fun money like me or in other areas such as groceries, utilities, or personal care.
Next, review your savings. When you review your savings, did you meet your goals? If not, what areas from your spending can you cut next year and contribute to your savings instead. Putting a little money aside from each paycheck can help you save for future financial goals, such as buying a new car or going on a dream vacation. However, emergency situations may arise and cause you to drain your savings if you didn’t financially prepare for the unexpected. A great goal for next year could be to start saving in an emergency fund. This account needs to be easily accessible, like a High Yield Online Savings account. Plus, it earns a high interest rate.
Reviewing your credit report and credit score are important steps to take to plan for your future. Building and maintaining a high credit score has so many benefits. However, it takes time to build a healthy credit score. By reviewing your credit report at the end of each year, you can see how much you need to grow to hit your goals. Big life events such as buying a house, renting an apartment, or getting a new job can be impacted by your credit score, so it’s always a good idea to keep your credit score as high as you can.
End-of-Year Giving
With the holidays just around the corner, spending money for family gatherings, outings with friends, and gifts for the special people in your life are likely on your mind. Have you thought about giving back to your community?
GivingTuesday is a movement designed to encourage us to give our time, effort, and finances back to our community and beyond. While the operation runs year-round, the first Tuesday after Black Friday is observed as the day to focus on giving. This GivingTuesday is December 3.
While donating boosts your morale knowing you’re doing good for your community, you can also receive financial benefits too! Charitable donations can be deducted from your taxes. This means that you’ll have less taxable income.
To make a charitable donation, first find a tax-exempt organization. There are several thousand in the St. Louis area to choose from, or you can find one somewhere else in the US with the search tool on the IRS website. If you aren’t sure if an organization qualifies, reach out and ask! GivingTuesday is popular day to donate, so the organization you have in mind is prepared for your questions.
Next, make your donation. Checks, credit card, stock, and options are all eligible forms of donation for getting your tax benefits. Make sure you donate in an acceptable method for the organization too. In order to get the tax benefits, you must make your donation by December 31.
Keep track of your donations. You’ll need a bank statement or credit card statement, and a receipt from the nonprofit to prove that you made a donation when you file your taxes. Keep all of these documents for each donation you make.
When you file your taxes in the spring, claim your donations as itemized deductions on your tax return. This is done through a Schedule A form.
If you made a noncash donation, you’ll follow a slightly different process, but the IRS website has all the information you need so that you and your favorite nonprofit can benefit from your act of kindness.
We Give Back Too
At Alltru, we don’t just tell you to donate your time or money for the financial benefits. We see the impact that donations make in the community. As a Community Development Financial Institution, or CDFI, we do more than just provide great banking service. We provide top of the line banking products and experiences for those in our community who would otherwise be denied the same from another financial institution. We report on the impact of our work every quarter to our CDFI Advisory Board and Board of Directors.
In addition, we give our employees eight hours of volunteer time each month so they can give back to the community while not having to worry about putting their own finances at stake for doing so. This year, we had teams of volunteers spend the serving in the warehouse at KidSmart, packing food with the St. Louis Area Foodbank, and preparing an apartment with Humanitri, just to name a few.
Conclusion
As the year comes to an end, it’s a great time to think about your finances and how to prepare for the future. By following these end-of-year money tips, you can set yourself up for success in the coming year.
Make sure to contribute as much as you can to your retirement and health savings accounts, open a high-yield savings account to grow your money faster, and review your spending habits and credit score. Don’t forget to consider giving back to your community, which can also provide tax benefits.
Taking these steps now will help you enjoy the holiday season and make it easier to reach your financial goals next year.
When you bank with Alltru, you’re investing in a not-for-profit organization who strives to serve our St. Louis community well all year round. You’re serving your community too just by banking at Alltru!
