diff --git a/packages/backend/app/models.py b/packages/backend/app/models.py
index 64d4481..bbea68b 100644
--- a/packages/backend/app/models.py
+++ b/packages/backend/app/models.py
@@ -133,3 +133,27 @@ class AuditLog(db.Model):
     user_id = db.Column(db.Integer, db.ForeignKey("users.id"), nullable=True)
     action = db.Column(db.String(100), nullable=False)
     created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+
+
+class SavingsGoal(db.Model):
+    __tablename__ = "savings_goals"
+    id = db.Column(db.Integer, primary_key=True)
+    user_id = db.Column(db.Integer, db.ForeignKey("users.id"), nullable=False)
+    name = db.Column(db.String(200), nullable=False)
+    target_amount = db.Column(db.Numeric(12, 2), nullable=False)
+    current_amount = db.Column(db.Numeric(12, 2), default=0, nullable=False)
+    currency = db.Column(db.String(10), default="INR", nullable=False)
+    deadline = db.Column(db.Date, nullable=True)
+    completed = db.Column(db.Boolean, default=False, nullable=False)
+    created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
+
+
+class SavingsMilestone(db.Model):
+    __tablename__ = "savings_milestones"
+    id = db.Column(db.Integer, primary_key=True)
+    goal_id = db.Column(db.Integer, db.ForeignKey("savings_goals.id"), nullable=False)
+    title = db.Column(db.String(200), nullable=False)
+    target_amount = db.Column(db.Numeric(12, 2), nullable=False)
+    reached = db.Column(db.Boolean, default=False, nullable=False)
+    reached_at = db.Column(db.DateTime, nullable=True)
+    created_at = db.Column(db.DateTime, default=datetime.utcnow, nullable=False)
diff --git a/packages/backend/app/routes/__init__.py b/packages/backend/app/routes/__init__.py
index f13b0f8..0a92db3 100644
--- a/packages/backend/app/routes/__init__.py
+++ b/packages/backend/app/routes/__init__.py
@@ -7,6 +7,7 @@
 from .categories import bp as categories_bp
 from .docs import bp as docs_bp
 from .dashboard import bp as dashboard_bp
+from .savings import bp as savings_bp
 
 
 def register_routes(app: Flask):
@@ -18,3 +19,4 @@ def register_routes(app: Flask):
     app.register_blueprint(categories_bp, url_prefix="/categories")
     app.register_blueprint(docs_bp, url_prefix="/docs")
     app.register_blueprint(dashboard_bp, url_prefix="/dashboard")
+    app.register_blueprint(savings_bp, url_prefix="/savings")
diff --git a/packages/backend/app/routes/savings.py b/packages/backend/app/routes/savings.py
new file mode 100644
index 0000000..8229b5b
--- /dev/null
+++ b/packages/backend/app/routes/savings.py
@@ -0,0 +1,326 @@
+from datetime import date
+from decimal import Decimal, InvalidOperation
+
+from flask import Blueprint, jsonify, request
+from flask_jwt_extended import jwt_required, get_jwt_identity
+from ..extensions import db
+from ..models import SavingsGoal, SavingsMilestone, User
+import logging
+
+bp = Blueprint("savings", __name__)
+logger = logging.getLogger("finmind.savings")
+
+
+@bp.get("")
+@jwt_required()
+def list_savings_goals():
+    uid = int(get_jwt_identity())
+    goals = (
+        db.session.query(SavingsGoal)
+        .filter_by(user_id=uid)
+        .order_by(SavingsGoal.created_at.desc())
+        .all()
+    )
+    return jsonify([_goal_to_dict(g) for g in goals])
+
+
+@bp.post("")
+@jwt_required()
+def create_savings_goal():
+    uid = int(get_jwt_identity())
+    user = db.session.get(User, uid)
+    data = request.get_json() or {}
+
+    name = (data.get("name") or "").strip()
+    if not name:
+        return jsonify(error="name required"), 400
+
+    target_amount = _parse_amount(data.get("target_amount"))
+    if target_amount is None or target_amount <= 0:
+        return jsonify(error="invalid target_amount"), 400
+
+    deadline = None
+    if data.get("deadline"):
+        try:
+            deadline = date.fromisoformat(data.get("deadline"))
+        except ValueError:
+            return jsonify(error="invalid deadline"), 400
+
+    goal = SavingsGoal(
+        user_id=uid,
+        name=name,
+        target_amount=target_amount,
+        current_amount=Decimal("0"),
+        currency=(data.get("currency") or (user.preferred_currency if user else "INR")),
+        deadline=deadline,
+    )
+    db.session.add(goal)
+    db.session.commit()
+
+    # Handle milestones if provided
+    milestones = data.get("milestones", [])
+    for m in milestones:
+        milestone_title = (m.get("title") or "").strip()
+        milestone_amount = _parse_amount(m.get("target_amount"))
+        if milestone_title and milestone_amount:
+            ms = SavingsMilestone(
+                goal_id=goal.id,
+                title=milestone_title,
+                target_amount=milestone_amount,
+            )
+            db.session.add(ms)
+    db.session.commit()
+
+    logger.info("Created savings goal id=%s user=%s target=%s", goal.id, uid, target_amount)
+    return jsonify(_goal_to_dict(goal)), 201
+
+
+@bp.get("/<int:goal_id>")
+@jwt_required()
+def get_savings_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+    return jsonify(_goal_to_dict(goal))
+
+
+@bp.patch("/<int:goal_id>")
+@jwt_required()
+def update_savings_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    data = request.get_json() or {}
+
+    if "name" in data:
+        name = (data.get("name") or "").strip()
+        if not name:
+            return jsonify(error="name required"), 400
+        goal.name = name
+
+    if "target_amount" in data:
+        target_amount = _parse_amount(data.get("target_amount"))
+        if target_amount is None or target_amount <= 0:
+            return jsonify(error="invalid target_amount"), 400
+        goal.target_amount = target_amount
+
+    if "current_amount" in data:
+        current_amount = _parse_amount(data.get("current_amount"))
+        if current_amount is None:
+            return jsonify(error="invalid current_amount"), 400
+        goal.current_amount = current_amount
+        # Check if goal is completed
+        if current_amount >= goal.target_amount and not goal.completed:
+            goal.completed = True
+            _check_milestones(goal)
+
+    if "deadline" in data:
+        if data.get("deadline"):
+            try:
+                goal.deadline = date.fromisoformat(data.get("deadline"))
+            except ValueError:
+                return jsonify(error="invalid deadline"), 400
+        else:
+            goal.deadline = None
+
+    if "currency" in data:
+        goal.currency = str(data.get("currency") or "INR")[:10]
+
+    db.session.commit()
+    return jsonify(_goal_to_dict(goal))
+
+
+@bp.delete("/<int:goal_id>")
+@jwt_required()
+def delete_savings_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    # Delete associated milestones first
+    db.session.query(SavingsMilestone).filter_by(goal_id=goal_id).delete()
+    db.session.delete(goal)
+    db.session.commit()
+    return jsonify(message="deleted")
+
+
+@bp.post("/<int:goal_id>/contribute")
+@jwt_required()
+def contribute_to_goal(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    data = request.get_json() or {}
+    amount = _parse_amount(data.get("amount"))
+    if amount is None or amount <= 0:
+        return jsonify(error="invalid amount"), 400
+
+    goal.current_amount = goal.current_amount + amount
+
+    # Check if goal is now completed
+    if goal.current_amount >= goal.target_amount and not goal.completed:
+        goal.completed = True
+
+    _check_milestones(goal)
+    db.session.commit()
+
+    return jsonify(_goal_to_dict(goal))
+
+
+# Milestone endpoints
+@bp.get("/<int:goal_id>/milestones")
+@jwt_required()
+def list_milestones(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    milestones = (
+        db.session.query(SavingsMilestone)
+        .filter_by(goal_id=goal_id)
+        .order_by(SavingsMilestone.target_amount.asc())
+        .all()
+    )
+    return jsonify([_milestone_to_dict(m) for m in milestones])
+
+
+@bp.post("/<int:goal_id>/milestones")
+@jwt_required()
+def create_milestone(goal_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    data = request.get_json() or {}
+    title = (data.get("title") or "").strip()
+    if not title:
+        return jsonify(error="title required"), 400
+
+    target_amount = _parse_amount(data.get("target_amount"))
+    if target_amount is None or target_amount <= 0:
+        return jsonify(error="invalid target_amount"), 400
+
+    milestone = SavingsMilestone(
+        goal_id=goal_id,
+        title=title,
+        target_amount=target_amount,
+    )
+    db.session.add(milestone)
+    db.session.commit()
+
+    # Check if this milestone is already reached
+    _check_milestones(goal)
+
+    return jsonify(_milestone_to_dict(milestone)), 201
+
+
+@bp.patch("/<int:goal_id>/milestones/<int:milestone_id>")
+@jwt_required()
+def update_milestone(goal_id: int, milestone_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    milestone = db.session.get(SavingsMilestone, milestone_id)
+    if not milestone or milestone.goal_id != goal_id:
+        return jsonify(error="not found"), 404
+
+    data = request.get_json() or {}
+
+    if "title" in data:
+        title = (data.get("title") or "").strip()
+        if not title:
+            return jsonify(error="title required"), 400
+        milestone.title = title
+
+    if "target_amount" in data:
+        target_amount = _parse_amount(data.get("target_amount"))
+        if target_amount is None or target_amount <= 0:
+            return jsonify(error="invalid target_amount"), 400
+        milestone.target_amount = target_amount
+
+    db.session.commit()
+    return jsonify(_milestone_to_dict(milestone))
+
+
+@bp.delete("/<int:goal_id>/milestones/<int:milestone_id>")
+@jwt_required()
+def delete_milestone(goal_id: int, milestone_id: int):
+    uid = int(get_jwt_identity())
+    goal = db.session.get(SavingsGoal, goal_id)
+    if not goal or goal.user_id != uid:
+        return jsonify(error="not found"), 404
+
+    milestone = db.session.get(SavingsMilestone, milestone_id)
+    if not milestone or milestone.goal_id != goal_id:
+        return jsonify(error="not found"), 404
+
+    db.session.delete(milestone)
+    db.session.commit()
+    return jsonify(message="deleted")
+
+
+def _goal_to_dict(g: SavingsGoal) -> dict:
+    milestones = (
+        db.session.query(SavingsMilestone)
+        .filter_by(goal_id=g.id)
+        .order_by(SavingsMilestone.target_amount.asc())
+        .all()
+    )
+    return {
+        "id": g.id,
+        "name": g.name,
+        "target_amount": float(g.target_amount),
+        "current_amount": float(g.current_amount),
+        "currency": g.currency,
+        "deadline": g.deadline.isoformat() if g.deadline else None,
+        "completed": g.completed,
+        "progress_percent": round(float(g.current_amount) / float(g.target_amount) * 100, 1)
+        if g.target_amount > 0
+        else 0,
+        "milestones": [_milestone_to_dict(m) for m in milestones],
+        "created_at": g.created_at.isoformat(),
+    }
+
+
+def _milestone_to_dict(m: SavingsMilestone) -> dict:
+    return {
+        "id": m.id,
+        "goal_id": m.goal_id,
+        "title": m.title,
+        "target_amount": float(m.target_amount),
+        "reached": m.reached,
+        "reached_at": m.reached_at.isoformat() if m.reached_at else None,
+    }
+
+
+def _parse_amount(raw) -> Decimal | None:
+    try:
+        return Decimal(str(raw)).quantize(Decimal("0.01"))
+    except (InvalidOperation, ValueError, TypeError):
+        return None
+
+
+def _check_milestones(goal: SavingsGoal):
+    """Check and update milestone completion status"""
+    milestones = (
+        db.session.query(SavingsMilestone)
+        .filter_by(goal_id=goal.id, reached=False)
+        .order_by(SavingsMilestone.target_amount.asc())
+        .all()
+    )
+    from datetime import datetime
+
+    for m in milestones:
+        if goal.current_amount >= m.target_amount:
+            m.reached = True
+            m.reached_at = datetime.utcnow()
diff --git a/packages/backend/tests/test_savings.py b/packages/backend/tests/test_savings.py
new file mode 100644
index 0000000..9584303
--- /dev/null
+++ b/packages/backend/tests/test_savings.py
@@ -0,0 +1,129 @@
+from datetime import date, timedelta
+
+
+def test_savings_goals_crud(client, auth_header):
+    # Initially empty
+    r = client.get("/savings", headers=auth_header)
+    assert r.status_code == 200
+    assert r.get_json() == []
+
+    # Create savings goal
+    payload = {
+        "name": "Emergency Fund",
+        "target_amount": 10000,
+        "currency": "USD",
+        "deadline": (date.today() + timedelta(days=180)).isoformat(),
+    }
+    r = client.post("/savings", json=payload, headers=auth_header)
+    assert r.status_code == 201
+    goal = r.get_json()
+    goal_id = goal["id"]
+    assert goal["name"] == "Emergency Fund"
+    assert goal["target_amount"] == 10000
+    assert goal["current_amount"] == 0
+    assert goal["progress_percent"] == 0
+    assert goal["completed"] is False
+
+    # Get single goal
+    r = client.get(f"/savings/{goal_id}", headers=auth_header)
+    assert r.status_code == 200
+    assert r.get_json()["id"] == goal_id
+
+    # Contribute to goal
+    r = client.post(f"/savings/{goal_id}/contribute", json={"amount": 2500}, headers=auth_header)
+    assert r.status_code == 200
+    goal = r.get_json()
+    assert goal["current_amount"] == 2500
+    assert goal["progress_percent"] == 25.0
+
+    # Update goal
+    r = client.patch(f"/savings/{goal_id}", json={"current_amount": 5000}, headers=auth_header)
+    assert r.status_code == 200
+    assert r.get_json()["current_amount"] == 5000
+
+    # Delete goal
+    r = client.delete(f"/savings/{goal_id}", headers=auth_header)
+    assert r.status_code == 200
+
+    # Verify deleted
+    r = client.get("/savings", headers=auth_header)
+    assert r.get_json() == []
+
+
+def test_savings_goal_with_milestones(client, auth_header):
+    # Create goal with milestones
+    payload = {
+        "name": "Vacation Fund",
+        "target_amount": 5000,
+        "currency": "USD",
+        "milestones": [
+            {"title": "Flight tickets", "target_amount": 1500},
+            {"title": "Hotel", "target_amount": 3500},
+        ],
+    }
+    r = client.post("/savings", json=payload, headers=auth_header)
+    assert r.status_code == 201
+    goal_id = r.get_json()["id"]
+
+    # Check milestones created
+    r = client.get(f"/savings/{goal_id}/milestones", headers=auth_header)
+    assert r.status_code == 200
+    milestones = r.get_json()
+    assert len(milestones) == 2
+    assert milestones[0]["title"] == "Flight tickets"
+    assert milestones[0]["reached"] is False
+
+    # Contribute to reach first milestone
+    r = client.post(f"/savings/{goal_id}/contribute", json={"amount": 1600}, headers=auth_header)
+    assert r.status_code == 200
+
+    # Check milestone reached
+    r = client.get(f"/savings/{goal_id}/milestones", headers=auth_header)
+    milestones = r.get_json()
+    assert milestones[0]["reached"] is True
+    assert milestones[1]["reached"] is False
+
+    # Add milestone later
+    r = client.post(f"/savings/{goal_id}/milestones", json={
+        "title": "Activities",
+        "target_amount": 4500
+    }, headers=auth_header)
+    assert r.status_code == 201
+
+    # Delete milestone
+    r = client.delete(f"/savings/{goal_id}/milestones/1", headers=auth_header)
+    assert r.status_code == 200
+
+
+def test_savings_goal_completion(client, auth_header):
+    # Create goal
+    payload = {
+        "name": "New Laptop",
+        "target_amount": 2000,
+        "currency": "USD",
+    }
+    r = client.post("/savings", json=payload, headers=auth_header)
+    assert r.status_code == 201
+    goal_id = r.get_json()["id"]
+
+    # Contribute enough to complete
+    r = client.post(f"/savings/{goal_id}/contribute", json={"amount": 2000}, headers=auth_header)
+    assert r.status_code == 200
+    goal = r.get_json()
+    assert goal["completed"] is True
+    assert goal["progress_percent"] == 100.0
+
+
+def test_savings_goal_defaults_to_user_currency(client, auth_header):
+    # Set preferred currency
+    r = client.patch("/auth/me", json={"preferred_currency": "INR"}, headers=auth_header)
+    assert r.status_code == 200
+
+    # Create goal without specifying currency
+    payload = {
+        "name": "Test Goal",
+        "target_amount": 5000,
+    }
+    r = client.post("/savings", json=payload, headers=auth_header)
+    assert r.status_code == 201
+    assert r.get_json()["currency"] == "INR"