Smart Money Habits Every UK Household Should Adopt in 2025

If you manage a household, keep track of your spending, or notice rising prices, you’re not the only one.

Recent data from the IFA Magazine found that 1 in 4 adults in the UK have less than £100 saved. This worrying statistic highlights the need for better financial habits more than ever before.

We compiled this guide with input from the team at Finli, a UK-based financial planning service that helps families navigate everything from saving and investing to will-writing and legacy planning.

Let’s look at some key financial habits that will help you manage your money in 2025.

11 Smart Money Habits UK Families

Here are some smart money habits that UK families need now:

• Budget With Realistic Prices, Not Wishful Thinking

Your grocery expenses are probably higher now than they were a few years ago, and this trend is expected to continue. If you are still using old receipts or last year’s budget, it’s time to update your approach.

Take a moment to review your current invoices and receipts to create a monthly budget based on today’s prices. Include the actual expenses of food, fuel, energy, and school supplies. Don’t forget to account for school uniform expenses as well.

• Review Your Direct Debits

Finding a money leak only takes five minutes, and they can be found everywhere. Many of us spend money on things that we do not use, these include: old streaming services or gym memberships we forgot to cancel.

According to a recent report from Berry Smith, many people in the UK waste hundreds of pounds each year on subscriptions they forget to cancel. These subscriptions can silently drain your money without you even realising it.

Go through your bank statement and examine each direct debit. If it doesn’t improve your life, cancel it.

Pro Tip: Set aside 15 minutes every three months for a “financial review” to keep your budget organised and updated.

• Build (or Top Up) Your Emergency Fund

Life is full of surprises. Home appliances break down, kids need new shoes for school, and unexpected costs can add up quickly.

Setting up a contingency fund is important for preparing for unexpected events. Begin by saving just £10 each week in a separate account. Use apps like Chip or Plum to easily automate your savings.

• Review Your Pension – Even If Retirement Feels Miles Away

Pensions might seem boring, but they are essential for your future.

A report from Finder UK shows that one in three adults in the UK has lost track of at least one pension fund. That’s money you have earned, but it’s going unclaimed.

Consider using the government’s Pension Tracing Service to locate your pension funds. This is useful if you have had multiple jobs.

You can combine your pensions using services like PensionBee. Be sure to check for any applicable fees.

• Set Up or Update Your Will

Having a will is important, even though it can be a sensitive issue.

Recent data from Painters Law shows that only 44% of adults in the UK have a will. This means that many people are putting their families through unnecessary stress if something were to happen to them.

If you’ve had a baby, purchased a house, or experienced a big life change, it’s time to review or set up your will.

You can use platforms like Farewill or Make a Will Online to complete the process fast and affordably.

• Start Talking Money With Your Partner or Kids

Money shouldn’t be a taboo subject at home. Families that discuss finances openly tend to develop healthier habits and avoid conflicts later.

According to the Money and Pensions Service, only 31% of parents teach their children about money.

Tip: Start small. Let your teenager create a grocery list while staying within a budget. Or, plan a “money night” with your partner each month to discuss goals, future costs and dreams.

• Check Your Credit Score Regularly

Your credit score reflects your ability to manage your finances effectively and this year, it’s crucial. Lenders are becoming stricter for mortgages and car loans. A good credit score can save you hundreds in interest over the loan life.

You can use free tools like ClearScore or MoneySavingExpert’s Credit Club to check your credit score regularly and identify any errors.

• Plan For Future Care Costs, Not School Fees

While raising children can be costly, planning for your own future care needs is equally important. According to NHS guidelines, care home expenses in the UK can go over £700 a week.

Start by setting up a “family assistance fund” or exploring care insurance options. Even a small, dedicated fund can provide you with more options in the future and ease financial pressure when making decisions.

• Set Seasonal Financial Goals

Several New Year’s resolutions fail, but breaking down your financial goals by season makes them easier to manage and more enjoyable.

• Spring: Start or check your emergency savings.
• Summer: Plan and budget for family vacations.
• Autumn: Review your debts and credit cards.
• Winter: Review your insurance policies and make sure your will is updated.

Use a printable planner or an app like Emma to keep you organised.

• Get Help Where You Need It (That’s Not a Failure)

If your finances feel disorganised or if you are unsure where to start, that’s okay. Asking for help is a sign of growth, not failure. Whether you need support with debt, organising life insurance, or getting pension advice, experts are ready to help you. Charities like StepChange offer free debt assistance, while other firms provide low-cost guidance on budgeting and saving.

• Shop Smarter – Avoid Falling for Sales Traps

Using smart buying strategies, like loyalty programs and cashback websites, can help you save money in 2025. Families can save between £300 and £500 each year by using cashback services.

Platforms like TopCashback and Quidco make it simple to earn money on everyday purchases. Don’t buy items just because they are on sale if you don’t need them.

Conclusion

You don’t need a finance degree to take control of your money. Many helpful habits are simple and cost nothing – you can start with just one.

This week, cancel an old subscription or schedule time to update your will. These small actions can lead to big improvements in your financial stability in the future.