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Here’s what should be on your financial to-do list for 2025, advisors say

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When it comes to financial resolutions, paying down debt is at the top of many to-do lists for 2025.

But financial advisors who work with clients every day have their own wish lists for what they think should be top financial priorities for 2025.

Here are some tips covering everything from budgeting to estate planning from experts who are members of the CNBC FA Council.

“Start slow and manageable with any new financial goals,” said Lee Baker, a certified financial planner and founder, owner and president of Claris Financial Advisors in Atlanta. “You’re better off getting some wins under your belt than trying to build Rome in a day only to end up frustrated.”

Make sure your budget aligns with your goals

A new year is a great time to revisit where your money is going.

“A little bit of time spent on understanding your actual spending and then deciding if it lines up with your goals and values is time very well spent,” said CFP Jude Boudreaux, a partner and senior financial planner with The Planning Center in New Orleans.

Ask yourself if your spending aligns with your goals and values and if it should continue, he suggested. Once you sit down and look at the numbers, it can help identify where you might want to make changes.

Bringing awareness to your spending can help ensure that you’re making the most of the money you’re taking in, advisors say.

“Mindful spending that reflects personal values can lead to greater satisfaction and stronger relationships,” said Rianka Dorsainvil, a CFP and founder and senior wealth advisor at YGC Wealth.

Evaluate where you can cut back on spending

While credit card debt has climbed to record highs and consumers still contend with higher prices, it’s a great time to streamline your spending.

The new year is also a good time to review your credit and debit card statements for the year, said Ted Jenkin, a CFP and founder and CEO of oXYGen Financial, a financial advisory and wealth management firm based in Atlanta.

Look for subscriptions, apps and memberships you don’t use and cancel them, he said.

Also be sure to take a look at how much you’re paying for streaming services, and where you might be able to cut back, Jenkin said. Multiple streaming service subscriptions can now add up to more than a cable bill. Families may save by cutting the number of subscriptions or by having multiple family members on one account, he said.

Also be sure to take a look at grocery bills and the tendency to add spontaneous purchases that can add up, Jenkin said.

Create a personal investment policy statement

When the market inevitably has ups and downs, the temptation is to react.

But research shows the market’s worst days are often closely followed by the best days. If you sell during a market drop, you’ll miss the upside.

By creating a personal investment policy statement, you can avoid reacting to what’s happening in the market and instead stay focused on your goals, said CFP Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.

For example, an investor with a long time horizon before retirement may choose to allocate 80% of their portfolio to equities and the remaining 20% to fixed income. When the market drops or soars, they can choose to rebalance back to that 80% equity allocation rather than give in to the temptation to react to the latest moves, McClanahan said.

Emotion-proof your portfolio: Here's what to know

Try to negotiate a higher salary

The start of a new year usually provides an opportunity to meet with your supervisor or boss to discuss your achievements and value to your team and company, said Cathy Curtis, a CFP and the founder and CEO of Curtis Financial Planning, a fee-only financial planning and investment advisory firm.

Before that meeting, research your market value and determine what salary or other compensation you want to ask for with a clear, concise pitch on why, Curtis said.

Also be sure to evaluate whether your work may be more highly rewarded elsewhere, she said.

Make sure your estate plan is up to date

One area of financial planning that people tend to avoid is estate planning, according to Louis Barajas, a CFP, enrolled agent and CEO of International Private Wealth Advisors in Irvine, California.

For anyone who has young children or who owns property, it’s particularly important to make sure you complete your estate plan, Barajas said.

Notably, estate planning does not necessarily have to be expensive, he said. For people who have financial situations that are not complicated, there are good online estate planning resources that help prepare wills, trusts, powers of attorney and guardian nominations for minimal costs.

Proper estate planning can help ensure your wishes for where you want your money to go are honored when you die. Importantly, that should also include your digital assets, said CFP Preston Cherry, founder and president of Concurrent Financial Planning in Green Bay, Wisconsin.

“These areas require annual reviews to help account for life and money milestones and adjustments in your value system,” Cherry said.

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Set time to meet with family to discuss money

More than half of Americans — 56% — say their parents never discussed money with them, according to a recent Fidelity survey.

To get a family money conversation going, it helps to set a formal time to discuss the topic.

Lazetta Rainey Braxton, a CFP and founder and managing principal of The Real Wealth Coterie, recommends scheduling at least two multigenerational family meetings per year to discuss intergenerational wealth.

Possible topics that could be discussed include financial resolutions, long-term care needs for older generations and the status of estate planning documents.

If married, make your spouse a priority

A successful marriage is often a predictor of personal happiness, said Tim Maurer, a CFP and the chief advisory officer at SignatureFD, with offices in Atlanta and Charlotte, North Carolina.

If you have a spouse, investing more time and money in your marriage will pay off, he said.

Start with open money conversations, where both spouses answer the questions “What’s working?” and “What could work better?” Maurer said.

It also helps to have weekly standing meetings to discuss calendars and budgets, where you can identify any adjustments that need to be made, he said.

Be sure to create a new budget category that is kept sacred for date nights, and strive to schedule that time together weekly, Maurer said.

Identify key financial deadlines — and start early

Whether it’s getting your tax return in before April 15 or a required minimum distribution before Dec. 31, it helps to get started well before the deadline.

“Think about all the things that come up over the course of the year and plan for it early,” said Baker of Claris Financial Advisors in Atlanta.

“Avoid waiting until the last minute,” Baker said. “You and your advisors will benefit.”

Consider gifting money now

For people who are retired or close to retirement and who have the means, it can make sense to give away money to loved ones now rather than wait, said Boudreaux of The Planning Center in New Orleans.

It provides an opportunity to identify the family’s values, and direct money in alignment with that purpose, Boudreaux said. For example, that could include financial help for adult children who are raising grandchildren now, he said.

In 2025, the annual gift tax exclusion will go up to $19,000 per recipient. However, individuals can still make gifts over that amount by filing a gift tax return with the IRS and counting it against their lifetime gift tax exemption, which will be $13.99 million in 2025, Boudreaux said.  

Notably, direct funding for education is not subject to gift tax limitations, he said.

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How to avoid delinquency, default, garnishment

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U.S. President Donald Trump talks to reporters aboard Air Force One, en route to Abu Dhabi, United Arab Emirates, on May 15, 2025.

Brian Snyder | Reuters

As the Trump administration ramps up its student loan collection efforts, worried borrowers need to ask themselves a key question: Am I delinquent, or in default? The answer determines your best next steps.

“We’ve had a lot of clients contacting us recently who are extremely stressed and, in some cases panicked, about their loan situation,” said Nancy Nierman, assistant director of the Education Debt Consumer Assistance Program in New York.

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However, some borrowers wrongly believe they’ll be subject to wage garnishments or offsets of their retirement benefits — when in fact they are delinquent but not yet in default, Nierman said.

If you’re delinquent, there are things you can do to avoid default. And even those who are in default and at risk for collections can take steps to avoid such outcomes.

“The federal student loan system does provide several paths for bringing loans out of default,” she said.

Delinquent or in default? Here’s how to tell

Once you are delinquent for 90 days or more, your student loan servicer will report your past due status to the national credit bureaus, which can lead to a drop in your credit score.

The Federal Reserve predicted in March that some people with a student loan delinquency could see their scores fall by as much as 171 points. (Credit scores typically range from 300 to 850, with around 670 and higher considered good.)

Lower credit scores can lead to higher borrowing costs on consumer loans such as mortgages, car loans and credit cards.

But you’re not considered to be in default on your student loans until you haven’t made your scheduled payment in at least 270 days, the Education Department says.

Only borrowers in default face garnishments

The federal government has extraordinary collection powers on its student loans and it can seize borrowers’ tax refundspaychecks and Social Security retirement and disability benefits.

But only those who’ve defaulted on their student loans can face these consequences, experts said.

How to get out of student loan delinquency

How to get out of student loan default

Student loan default collection restarting

You can get out of default on your student loans through rehabilitating or consolidating your debt, Nierman said.

Rehabilitating involves making “nine voluntary, reasonable and affordable monthly payments,” according to the U.S. Department of Education. Those nine payments can be made over “a period of 10 consecutive months,” it said.

Consolidation, meanwhile, may be available to those who “make three consecutive, voluntary, on-time, full monthly payments.” At that point, they can essentially repackage their debt into a new loan.

After you’ve emerged from default, experts also recommend requesting a monthly bill you can afford.

If you don’t know who your loan servicer is, you can find out at Studentaid.gov.

“Explore your options and create a plan for returning your loans back to good standing so you will not be subject to punitive collections activity,” Nierman said.

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Why long-term care costs can be a ‘huge problem’

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Long-term care can be costly, extending well beyond $100,000. Yet, financial advisors say many households aren’t prepared to manage the expense.

“People don’t plan for it in advance,” said Carolyn McClanahan, a physician and certified financial planner based in Jacksonville, Florida. “It’s a huge problem.”

Over half, 57%, of Americans who turn 65 today will develop a disability serious enough to require long-term care, according to a 2022 report published by the U.S. Department of Health and Human Services and the Urban Institute. Such disabilities might include cognitive or nervous system disorders like dementia, Alzheimer’s or Parkinson’s disease, or complications from a stroke, for example.

The average future cost of long-term care for someone turning 65 today is about $122,400, the HHS-Urban report said.

But some people need care for many years, pushing lifetime costs well into the hundreds of thousands of dollars — a sum “out of reach for many Americans,” report authors Richard Johnson and Judith Dey wrote.

Planning for long-term care: Here's what you need to know

The number of people who need care is expected to swell as the U.S. population ages amid increasing longevity.

“It’s pretty clear [workers] don’t have that amount of savings in retirement, that amount of savings in their checking or savings accounts, and the majority don’t have long-term care insurance,” said Bridget Bearden, a research and development strategist at the Employee Benefit Research Institute.

“So where is the money going to come from?” she added.

Long-term care costs can exceed $100,000

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It seems many households are unaware of the potential costs, either for themselves or their loved ones.

For example, 73% of workers say there’s at least one adult for whom they may need to provide long-term care in the future, according to a new poll by the Employee Benefit Research Institute.

However, just 29% of these future caregivers — who may wind up footing at least part of the future bill —had estimated the future cost of care, EBRI found. Of those who did, 37% thought the price tag would fall below $25,000 a year, the group said.

The EBRI survey polled 2,445 employees from ages 20 to 74 years old in late 2024.

Many types of insurance often don’t cover costs

Maskot | Maskot | Getty Images

Where is the money going to come from?

Bridget Bearden

research and development strategist at the Employee Benefit Research Institute

But Medicare doesn’t cover “custodial” care, when someone needs help with daily activities like bathing, dressing, using the bathroom and eating, McClanahan said. These basic everyday tasks constitute the majority of long-term care needs, according to the HHS-Urban report.

Medicaid is the largest payer of long-term care costs today, Bearden said. Not everyone qualifies, though: Many people who get Medicaid benefits are from lower-income households, EBRI’s Bearden said. To receive benefits for long-term care, households may first have to exhaust a big chunk of their financial assets.

“You basically have to be destitute,” McClanahan said.

Republicans in Washington are weighing cuts to Medicaid as part of a large tax-cut package. If successful, it’d likely be harder for Americans to get Medicaid benefits for long-term care, experts said.

Long-term care insurance considerations

The Good Brigade | Digitalvision | Getty Images

Few households have insurance policies that specifically hedge against long-term care risk: About 7.5 million Americans had some form of long-term care insurance coverage in 2020, according to the Congressional Research Service.

By comparison, more than 4 million baby boomers are expected to retire per year from 2024 to 2027.

Washington state has a public long-term care insurance program for residents, and other states like California, Massachusetts, Minnesota, New York and Pennsylvania are exploring their own.

How senior care became a $600 billion business

Long-term care insurance policies make most sense for people who have a high risk of needing care for a lengthy duration, McClanahan said. That may include those who have a high risk of dementia or have longevity in their family history, she said.

McClanahan recommends opting for a hybrid insurance policy that combines life insurance and a long-term care benefit; traditional stand-alone policies only meant for long-term care are generally expensive, she said.

Be wary of how the policy pays benefits, too, she said.

For example, “reimbursement” policies require the insured to choose from a list of preferred providers and submit receipts for reimbursement, McClanahan said. For some, especially seniors, that may be difficult without assistance, she said.

With “indemnity” policies, which McClanahan recommends, insurers generally write benefit checks as soon as the insured qualifies for assistance, and they can spend the money how they see fit. However, the benefit amount is often lower than reimbursement policies, she said.

How to be proactive about long-term care planning

“The challenge with long-term care costs is they’re unpredictable,” McClanahan said. “You don’t always know when you’ll get sick and need care.”

The biggest mistake McClanahan sees people make relative to long-term care: They don’t think about long-term care needs and logistics, or discuss them with family members, long before needing care.

How families are managing the steep costs of long term seniors care

For example, that may entail considering the following questions, McClanahan said:

  • Do I have family members that will help provide care? Would they offer financial assistance? Do I want to self-insure?
  • What are the financial logistics? For example, who will help pay your bills and make insurance claims?
  • Do I have good advance healthcare directives in place? For example, as I get sicker will I let family continue to keep me alive (which adds to long-term care expenses), or will I move to comfort care and hospice?
  • Do I want to age in place? (This is often a cheaper option if you don’t need 24-hour care, McClanahan said.)
  • If I want to age in place, is my home set up for that? (For example, are there many stairs? Is there a tiny bathroom in which it’s tough to maneuver a walker?) Can I make my home aging-friendly, if it’s not already? Would I be willing to move to a new home or perhaps another state with a lower cost of long-term care?
  • Do I live in a rural area where it may be harder to access long-term care?

Being proactive can help families save money in the long term, since reactive decisions are often “way more expensive,” McClanahan said.

“When you think through it in advance it keeps the decisions way more level-headed,” she said.

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College majors with the best and worst employment prospects

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College commencement is a time of optimism for newly minted graduates. But this year, there’s also more uncertainty about the economy and employment — and grads in some unexpected majors may find they have a leg up.

Majors in nutrition, art history and philosophy all outperformed STEM fields when it comes to employment prospects, according to a recent analysis of labor market outcomes of college graduates by major by the Federal Reserve Bank of New York.

For computer science and computer engineering, the unemployment rate in those fields was 6.1% and 7.5%, respectively — notably higher than the national average.

By comparison, the unemployment rate for art history majors was 3%, and for nutritional sciences, the unemployment rate was just 0.4%, the New York Fed found. The New York Fed’s report was based on Census data from 2023 and unemployment rates of recent college graduates.

Economics and finance majors also fared worse than those in theology and philosophy when it came to the employment rates for recent college graduates, according to the New York Fed.

Employment prospects are shifting

In general, what you choose to major in has significant implications for your job prospects and future earnings potential.

Majoring in STEM is often touted as the ticket to a well-paying position in good times and bad, and that is mostly true.

In fact, students who pursue a major specifically in computer science or computer engineering — both STEM disciplines — are projected to earn the most right out of school with median wages of $80,000.

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Even so, demand for humanities majors is on the rise, and with good reason, despite some student debt critics taking aim at the low value of some coursework, like “zombie studies,” for example.

At a conference last year, Robert Goldstein, the chief operating officer of BlackRock, the world’s biggest money manager, said the firm was adjusting its hiring strategy for recent grads. “We have more and more conviction that we need people who majored in history, in English, and things that have nothing to do with finance or technology,” Goldstein said.

This demand for liberal arts degrees is due in part to the rise of AI, which drives the need for creative thinking and so-called soft skills

Opportunities in health care

Meanwhile, jobs in the the health care sector continue to be in high demand in 2025.

The U.S. economy added 902,000 health care and social assistance jobs last year and employment in health care occupations is “projected to grow much faster than the average” for all U.S. jobs through 2033, according to the Bureau of Labor Statistics.

The unemployment rate among nursing majors is just 1.4%, the New York Fed also found.

“Nursing is extremely resilient in times of economic uncertainty, like we ae seeing right now,” said Travis Moore, a registered nurse and healthcare strategist at job site Indeed.

Although the median wage right out of school [for nurses] is lower than it is for economics and finance majors, heading into a possible economic downturn, job security may be a more important measure, he said.

“There’s a significant nursing shortage going on right now,” Moore said — and that “creates a really strong opportunity to get into a career with really low layoffs.”

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