The Family Money Check-Up: 8 Things to Review Every Year

What worked for your family’s money two years ago might not work today. Salaries change, mortgage rates get renewed, children start school, and bills gradually rise. However, many parents set up a few automatic payments and then forget about them.

According to the Financial Conduct Authority, 1 in 10 adults in the UK have no savings at all. Additionally, another 21% have less than £1,000 saved for emergencies. This financial shortfall often happens slowly without people realising it, especially as family expenses grow. A quick money review once a year can help you spot these changes early.

Why Review Your Finances Every Year?

Life with a family is always evolving. What worked financially with one income might not fit two. A mortgage that seemed manageable before children can feel stretched thin once school expenses begin. Taking time each year to review your finances gives you an honest picture of where you stand.

Key Money Areas to Review Annually

Here are eight things to review together annually, perhaps over a cup of tea:

• Household Spending and Bills

You might still be paying for old subscriptions or automatic payments you no longer need. Review your bank statements from the last three months to see what is being taken out weekly. For instance, if your child has begun school, you can stop paying the monthly nursery fee.

• Emergency Savings Cushion

An emergency fund covers unexpected costs like boiler repairs or vet bills. Aim to save three to six months of essential living costs, though any amount helps. If you haven’t added to your savings this year, set up a small automatic transfer for the day you get paid.

• Outstanding Debts and Repayments

Write down all your debts, such as credit cards and car loans. For each debt, include the interest rate and how much is owed. It’s usually better to pay off the debt with the highest interest rate first. This can save you more money in the long run than paying off many small debts. For example, you should pay off a credit card with a 23% interest rate before a store card with a 0% interest rate.

• Insurance and Protection Cover

When your family expands, so do your insurance needs. For example, a couple without kids might not need life insurance. But that’s different once they have a mortgage and a child. Review your life insurance, income protection, and home insurance together. Make sure your cover is still enough to pay your mortgage and everyday bills.

• Pension Contributions and Progress

Your pension statement comes once a year, and it’s easy to set it aside without looking at it. You should check how much of your salary is going into your pension. See if your employer adds more money if you contribute extra. Also, ensure you’ve found any old pensions you might have.

Pension rules and tax limits change frequently, which can make checking your pension complicated. Families in this position often bring in a specialist for a second opinion, such as Partridge Muir & Warren (PMW), which offers financial planning in Kingston. It’s simpler to discuss your pension, taxes, and investments together. This way, you can understand how changes in one area impact the others.

• Family Savings Goals

Setting clear goals helps your money work harder. Set a target amount and date for items like driving lessons or a summer holiday. Round-up apps and automatic transfers can help you make steady progress effortlessly.

• Investments and Risk Level

When you are in your 30s, the investments that work well for you might be too risky as retirement approaches, or not growth-focused enough when you still have many years to save. Check how your money is divided among savings, funds, and stocks to ensure the balance fits your risk tolerance.

• Wills and Beneficiary Details

A 2026 Money and Pensions Service report found that 56% of adults in the UK haven’t made a will. Without one, assets are distributed according to intestacy laws, not personal preferences. A will lets you appoint guardians for your children and decide who gets your possessions.

Remember that pension and life insurance policies have their own beneficiary forms. Update these after major life events like marriage, divorce, or having a child, since a will doesn’t automatically change them.

Quick Checklist for This Year’s Review

• Spending: reviewed the last 3 months of bank statements
• Emergency savings: pot covers 3 to 6 months of essentials
• Debts: listed with interest rates, highest rate targeted first
• Insurance: cover levels checked against mortgage and family size
• Pensions: contribution rate checked, old pots tracked down
• Savings goals: figure and date attached to each one
• Investments: mix checked against comfort with risk
• Wills & Beneficiaries: will written and policy details updated

Conclusion

You don’t need to spend an entire weekend reviewing your family’s finances. Checking your spending, savings, debts, insurance, pensions, goals, investments, and wills once a year keeps your finances aligned with your current life, not an old plan. Choose one evening this month, gather your documents, and start with the area that feels most neglected.

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Becky

Meet the award-nominated UK lifestyle blogger behind Spirited Puddle Jumper – a mum of three living in South East London! Becky shares the real ups and downs of family life, parenting tips, and lifestyle inspiration, proving that being a mum doesn’t mean you stop being fun or having other interests! Follow along for honest insights into UK family life and opinions on a whole range of topics, from travel and food, to beauty reviews, home and DIY, business and health and wellness.