SUMMARY: With an unpredictable new year ahead, we offer some best financial practices to help you navigate the unknown. Each new year offers unique financial challenges and market unknowns.

As we move into 2025, we know a few things: Inflation has moderated, but housing costs continue to be high. Insurance premiums are increasing as natural disasters become unpredictable. We know that cryptocurrency is booming, for the moment, but the prospects for interest rates are uncertain. All told, there are lots of reasons for optimism and just as many to exercise caution. 

Even as 2025 hints that it could be a demanding year, you can still find a path through the uncertainties and achieve your financial goals. Commit to some tried-and-true financial practices, take advantage of a few new financial services that American Airlines Federal Credit Union offers, and you'll stand on solid financial ground in the coming year. 

Build your financial knowledge. Improving your financial literacy is vital, and, for 2025, it may be especially important because of the uncertainties and options visible in today’s financial landscape. Members of the Credit Union have special resources addressing this need. The Navigator* is a web-based skill-building tool offered to members that lets you learn about personal finance in an interactive, self-paced fashion tailored to your own situation. As a Credit Union member, you can also find educational  seminars on a wide range of finance-related topics, and catch up on the ones you missed via our YouTube channel.

Tap expert assistance. You can improve the quality of your financial decisions with input from a financial professional. The Credit Union’s Financial Wellness program connects you with certified counselors who can give you personalized assistance with a wide range of financial questions and situations.

“Certified Financial Counselors are available to assist members in reaching their financial goals,” said Jamie Fatheree, Financial Wellness Manager at the Credit Union. “We can assist members with credit repair and debt-payoff plans as well as budgeting and building emergency savings or preparing for a large purchase. We work with members to create a unique plan to address their needs.”

Whether you’re trying to repair damaged credit or just need someone to provide support and accountability, these counselors offer expertise and experience to provide individualized assistance.

Use financial tools and services to optimize savings. Refinancing auto loans or mortgages can save you substantial dollars. After the federal rate spike, many new homeowners were facing a hefty mortgage payment. Mortgage modification can help. The Credit Union offers a chance to modify your rate without the full cost of refinancing. Lower auto payments can help reconcile your budget, too. Whether you have your auto loan through the Credit Union or through another financial institution, the Credit Union’s auto refinance program can provide costs savings that can add up throughout the course of the loans.   

Know your financial goals. Saving to buy a home? Want to build or boost your savings? Have student loans you want to pay off? The Credit Union can help you no matter what your personal financial needs might be. Learn more about the Credit Union’s student loan financial option which comes with several benefits when refinancing your private student loans. We also offer several ways to start saving today, including share certificates with higher rates of return and terms starting at 6 months. 

Budget. No matter what the current financial environment may be, you can always benefit from a well-designed budget. The act of writing down all your bills and sources of money is a powerful first step in making sure your ends meet every month. If you haven’t had any previous experience estimating future income and expenses on your own, it may seem daunting. But fear not because Financial Wellness coaches can help you design a plan to bring your obligations in line with your resources. 

Build an emergency fund. A keystone of any personal financial plan is a rainy-day fund. Having funds set aside can be a financial lifesaver in the event of unforeseen car repairs, medical expenses, employment gaps or other contingencies. In recognition of that, the Credit Union offers an Emergency Fund Savings Account that features no minimum balance or monthly fees and lets you set up a regular monthly amount to automatically deposit.

“We all know that putting money in savings is important, but understanding what we’re saving for is key,” Fatheree said. “I find that when we compartmentalize our savings for specific purposes, it makes it easier to reach our savings goals. By opening an Emergency Fund Savings Account, members can prioritize setting money aside strictly for emergency use. You can start with a goal of $1,000. Once you’ve reached that goal, strive for three to six months of income. Commit to only using that money for emergencies, such as unplanned medical expenses or income loss.”

Borrow wisely. Debt management is always central to personal financial best practices. And one of the best ways to reduce debt costs is consolidating high-interest loans. This is where the Credit Union’s balance transfer comes in. Open a new credit card and take advantage of our frequent offers designed to help you pay off that card balance quicker.  Your credit score also has a sizable impact on your borrowing costs. You can track your credit score and even learn how to improve it with Credit Union’s free credit score monitoring, available through Financial Wellness. 

Manage risk. Increasing healthcare costs and more frequent and expensive natural disasters are two reasons that maintaining adequate insurance is a key personal financial practice in 2025. Health, homeowners and automobile insurance are essential for most people, and you may also want to consider disability and long-term care coverage. Both premiums and coverage restrictions are rising, so take time to identify the best policy for your needs and compare quotes.

Armed with these best practices for personal finance, specially tailored to the environment of 2025, you can embark on the new year confident that you’re well-equipped for whatever financial challenges await. 

* The Navigator is powered by Enrich.