Skip the New Year’s Resolutions: 7 Real-World Financial Habits for 2026

Look, New Year's resolutions are kind of a scam. Especially the financial ones. January hits, you're pumped about finally "getting your finances together," and by February you're back to ordering takeout four times a week and justifying those subscription charges hitting your account.

With inflation still hovering above 3%, 2026 isn't going to be the year everything magically gets easier financially. Households earning less than $100k are feeling squeezed in ways that a cute budgeting spreadsheet just won't fix. Raising kids is expensive but families can actually survive it with seven practical financial habits that work.

What you can learn:

How to automate savings, set up an emergency fund and retirement accounts effortlessly

How to reduce monthly bills

Proven debt repayment strategies

How to save money on kids' clothes

How to save money on food

Financial literacy for kids: age-appropriate ways to teach children about money

Maximize credit card rewards: using cash-back and loyalty programs for free perks

1. Automate Your Money (Seriously, Just Set It and Forget It)

Here's what I've learned: the less I have to think about saving money, the more money I actually save.

Setting up automatic transfers is like admitting you don't trust yourself. And you probably shouldn't because your emotions and biases affect your financial decisions. Without understanding how your brain sabotages your wallet, you’re susceptible to forgetting or ignoring the best laid plans.

What you should be automating:

• Emergency fund: Financial experts will tell you to save 3-6 months of expenses. If you're sitting there thinking "sure, and I'll just grow a money tree in my backyard," start smaller. Even $250-$500 gives you breathing room.

• Retirement contributions: I know, I know… retirement feels like a million years away when you're just trying to make it through this week. But the IRA contribution limit for 2026 is $7,500, and the tax benefits alone make it worth considering.

• The "oh crap" fund: Funneling whatever you can into a separate savings account for those predictable-but-still-somehow-surprising expenses. Back to school shopping. Holiday gifts. New tires.

• Bills: Set up a dedicated checking account just for automatic bill payments and keep a buffer of $200-500 in there. Then reimburse it from your main account every paycheck (also automated, because did I mention I love automation?). This way you're never scrambling to make sure there's enough money for the electric bill.

2. Stop Hemorrhaging Money on Streaming Services

Look, I get it. We're tired. We just want to collapse on the couch and watch something that doesn't require thinking. But you don't need to pay for multiple services at the same time. Try this instead:

• Rotate your subscriptions quarterly. Seriously. Subscribe to one or two services, binge everything you want to watch, then cancel and switch to different ones. Most services make it ridiculously easy to cancel and resubscribe. There's no loyalty program here. They don't care about you, so don't feel guilty.

• Hunt for deals. During Cyber Week 2025, HBO Max dropped to $3/month and the Disney+/Hulu bundle went to $6/month for annual subscribers. These deals happen regularly. Set a reminder to check for promotions around major shopping holidays.

• Bundle through your phone or internet provider. We get Netflix, Apple, and Hulu included with our T-Mobile plan. And HBO Max through our AT&T internet. Check what freebies come with services you're already paying for.

3. Actually Deal With That Debt

Credit cards can make and break you. Before we talk about paying off debt, make sure you understand the best and worst expenses to pay with a credit card. Some expenses will cost you more in fees than you'll earn in rewards, while others offer purchase protection and cash back that make them worth charging.

If you're carrying debt in 2026, here's how to tackle it:

• The Snowball Method: Pay off your smallest debts first, regardless of interest rate. Yes, mathematically it's not optimal. But neither is giving up entirely because you feel overwhelmed. Those little wins matter when you're trying to stay motivated.

• The Avalanche Method: Pay off high-interest debt first. This saves you the most money long-term, but it requires patience if your highest-interest debt is also your biggest balance.

• Lower Your Credit Utilization: Focus on paying down cards that are close to maxed out. Using more than 30% of your available credit hurts your credit score, which then makes future borrowing more expensive. It's a vicious cycle.

• Debt Consolidation: Combining multiple debts into one lower-interest payment can help, but be careful. Those federal student loan benefits (like deferment options) disappear once you consolidate them with other debt. And if you're using a balance transfer credit card, you better have a solid plan to pay it off before that 0% APR expires.

4. Embrace the Thrift Life

Kids outgrow clothes approximately 47 times faster than you'd think is physically possible. Buying everything new is financially suicidal.

You'll find barely-worn clothes for $3-5 instead of $15-25 at thrift stores, consignment shops, and on Facebook Marketplace. Sometimes you even score the fancy stuff.

"But I want my kids to have nice things!" Your toddler does not care if their t-shirt came from Target or a thrift store. They care about whether you'll let them eat crackers for dinner and if they can stay up past bedtime.

5. Stop Spending a Fortune on Food

For busy and burnt-out out parents, the siren call of takeout is real. But even fast food is getting pricey (umm… why was it $29 for a couple of burgers and one large fry for my husband and I?).

Here are some ways to save on food without becoming ones of those #MealPrepSunday people:

• Keep it flexible: Plan a few reliable meals, but have backup ingredients for throw-together dinners. Pasta, jarred sauce, frozen vegetables, etc.

• Batch cook when you can: Make double portions and freeze half. Future you will be thrilled to find homemade chili in the freezer on a Wednesday night.

• Use what you have: Build meals around cheap staples like beans, rice, pasta, eggs, and whatever vegetables are on sale. You don't need fancy ingredients to make decent food.

• Grab hot foods from the grocery store on those crazy evenings: A rotisserie chicken and pre-chopped veggies are cheaper than delivery, probably healthier, and requires zero actual cooking.

• Buy non-perishables in bulk but not fresh foods: That giant container of spinach you bought with good intentions is going to rot. Buy in bulk for things that won't go bad, and accept that you're probably not going to eat 10 pounds of bananas before they turn to mush.

6. Teach Your Kids About Money (Without Making It Weird)

Starting early with money lessons is one of those things that feels optional but really isn't. The financial literacy we wish we'd gotten; we can actually give that to our kids.

Use age-appropriate tools. There are great allowance apps out there now or go old-school with a physical tools. The point is to create familiarity.

My 2-year-old has zero concept of money, but he understands "more." So I got him a clear piggy bank for him to drop coins into. When he's old enough to actually grasp what money means, he'll already have a foundation.

For older kids, involve them in real decisions. Let them see you comparing prices at the store. Talk about why you're choosing to save for something instead of buying it right now. They're absorbing way more than you think.

7. Make Your Spending Pay You Back

Okay, here's where saving money gets a little bit fun. Cash-back credit cards and rewards programs are basically free money for buying stuff you'd purchase anyway.

Big caveat before we go further: This only works if you pay off your entire balance every month. If you're carrying a balance, the interest charges will eat your rewards and then some. This is not a debt solution. It's a strategy for people who already have their spending under control.

Here's how to maximize rewards in 2026:

• Use a cash-back card for everything: Groceries, gas, bills—if they take credit cards, use it. The rewards add up faster than you'd expect. Just set it to auto-pay the full balance and pretend it's a debit card.

• Sign up for store loyalty programs: Yeah, they're tracking your purchases. But they're also giving you discounts and points. Most grocery stores and pharmacies have free programs that actually save you money.

• Stack your rewards: Use your cash-back card to buy something from a store where you also have a loyalty program. Double dip whenever possible.

I've redeemed enough Chase points for an Apple watch, AirPods, a MacBook Pro, and countless gift cards. It felt like free stuff, even though obviously I'd spent money to earn those points. But since I was spending that money anyway the rewards were genuinely free.