On July 4, 2025, President Donald Trump signed a new law passed in Washington known as the “One Big Beautiful Bill.” This far-reaching legislation includes a series of measures that will impact millions of Latinos in the United States. In this article, we’ll break down the good and not-so-good parts of the new law, and most importantly, address what it means for your money and investments. We’ll review the changes to your taxes, the Child Tax Credit, adjustments to social programs, and key costs you need to know about.
Two Benefits of the Big Beautiful Bill You Should Take Advantage Of
The new law offers two major benefits that could positively impact your wallet. First, it promises direct tax relief, since tax rates have been reduced for middle-income earners. If your household has an adjusted gross income between $36,000 and $65,000 per year, you could see an average increase of $720 annually. That’s like getting 1.4% more of your income each year in your pocket. And that money isn’t meant to just sit in your bank doing nothing!
This is an opportunity to start building that down payment for a new home or to kick-start a financial goal, like saving for retirement. Even if you start small, think big and automate your investments. Instead of treating it as another expense, start with a weekly, biweekly, or monthly deposit with Finhabits. That money you invest in the market will be working for you in the long run.
Increase in the Child Tax Credit
The second highlight of this law is a larger Child Tax Credit. The credit increased from $2,000 to $2,200 per child. In addition, a larger portion of the credit is now refundable, which means you can get more money back. What does this mean for you? For most families, our children are our greatest motivation, and this larger credit is a direct support for their needs, and more importantly, their future. It’s additional money that the government is giving you to help your kids, so consider opening an investment account for their education that will help send them to college when they are ready.
Challenges Presented by the Big Beautiful Bill, And How to Confront Them
Trump’s One Big Beautiful Bill introduces benefits, but also includes important cuts that will affect millions of Latinos in the U.S., especially those in the most vulnerable sectors. It’s essential to have the right information to face these challenges — because information is power.
Impact on Social Benefits
One of the most impactful challenges is the cuts to social programs such as Medicaid and the Supplemental Nutrition Assistance Program (SNAP), also known as food stamps. While these programs primarily support low-income families, we know that in hard times — like during unemployment — many families rely on this social safety net.
So what does this mean for you? It means that the public safety net is going to be weaker. That’s why now more than ever, it’s important to build your own financial security with an emergency fund. An emergency fund is money set aside specifically for unexpected expenses. We recommend you keep at least $1,000 in your emergency fund. Start building it now, because it’s essential to have one.
Additional Cuts and Restrictions
Another challenge in the new law is the elimination of incentives for clean energy and electric vehicles, which could lead to higher gas and electricity costs in the long term. Funding was also cut for the Consumer Financial Protection Bureau. This agency is a key ally for consumers that protects us from unfair financial practices by banks and financial institutions.
How do these changes affect you? Think of it this way: your monthly budget may be hit by higher costs, and with less oversight, it’s more important than ever to be smart and cautious about the financial products you choose. Carefully review your budget and look for unnecessary expenses. It’s essential that you clearly understand your monthly financial picture.
One way to do so is with Emma, Finhabits’ personalized, virtual financial planner available in the Finhabits App. Emma can help you build a monthly budget and financial plan that includes all your expenses. The golden rule is: don’t spend more than you earn. Be transparent and create a budget that helps you abide by that rule, and don’t overspend!
Also, Finhabits is registered with the U.S. Securities and Exchange Commission (SEC), which means we comply with strict regulations designed to protect investors. That transparency and trust are key to investing with confidence. For us, it’s essential that you have access to high-quality financial information that gives you the tools to make better decisions and build your financial future.
Conclusion
In short, you need to stay informed and take advantage of the new tax benefits from the One Big Beautiful Bill. That money isn’t for spending — it’s for investing in your goals. Second, use the child tax credit to start building your children’s educational future. And third, in the face of cuts and potential cost increases, you need to strengthen your emergency plan. It’s essential to have a financial security net and to constantly be learning.
Building wealth isn’t a one-time event — it’s a series of good habits repeated over time. It’s like going to the gym. You won’t see results in one day, but with consistency, you’ll transform. The same goes for your finances. Every dollar you invest is a vote of confidence in your future and your family’s future. It’s a step toward the financial security and freedom we all seek. What matters is that you start — whether it’s with $20, $50, or $100 a week, or more if you can. The important thing is to start today.
Remember, at Finhabits, we’re here to support you every at step of your financial journey. You are not alone.
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