Hi friends,

After a summer of travel, we’ve been reflecting on just how much our money mindset shows up when we’re away from home.

Travel can be joyful, eye-opening, and deeply restorative. But it can also bring up financial stress—especially when costs start to pile up or when we’re trying to stick to a plan while still saying yes to the unexpected.

At Modern Family Finance, we believe that financial planning isn’t about cutting back on what brings you joy. It’s about aligning your money with your values—so you can say yes on purpose.

In this month’s blog, we’re sharing practical, creative ways to save money on travel without sacrificing meaning, comfort, or fun. Whether you're planning a last-minute Labor Day getaway or mapping out next year’s big adventure, we’ve got tips for every budget and travel style.

Read our full blog “How to Save Money on Luxury Vacations: Smart Tips from a Financial Advisor Who’s Traveled the World”

What We Want to Share: What does the new tax act mean for you?

The “Big Beautiful Bill” just passed, and while it’s framed as a tax package, it’s actually a sweeping piece of legislation that folds in everything from healthcare and energy to immigration and AI.

Here’s what it means for you from a practical, near-term perspective in regards to taxes:

• Tax Brackets Hold Steady: The income tax brackets established under the 2017 tax cuts remain in place, with the top marginal rate staying at 37%. The standard deduction increases ($31,500 joint and $15,750 single) and will be indexed for inflation going forward.
• SALT Deduction Boosted (temporarily): The cap on state and local tax (SALT) deductions increases from $10,000 to $40,000 through 2029—a win for Californians and other high-tax states. But there’s a catch: the higher cap phases out for incomes above $500,000 for joint filers (or $250,000 for single).
• Child-Related Tax Changes:
  • The Child Tax Credit increases to $2,200 per child starting in 2025. The bill also makes permanent the higher income phaseout thresholds—$400,000 for joint filers and $200,000 for single.
  • The Dependent Care Credit is more generous too—worth up to $1,500 for one child and $3,000 for two or more, starting in 2026. Higher income households still qualify, but at a lower rate. If both parents have earned income and you’re paying for childcare, don’t forget to claim this credit.
  • New savings account for kids: These accounts function like a traditional IRA for minors. If you have a baby born between 2025 and 2028, it may be worth opening one to receive a $1,000 federal contribution. Otherwise, the benefits are limited as these aren’t Roth-style accounts.
  • 529 Plan Expansion: These education savings accounts are now more flexible than ever. Annual withdrawals for K–12 expenses have increased from $10,000 to $20,000, and the list of qualified expenses has expanded to include tutoring, testing fees, educational therapies, and even professional certification costs.
    ​Note for CA residents: The state still considers K–12 withdrawals non-qualified, so earnings are subject to state income tax and a 2.5% penalty. That said, studies show it can still make sense for many CA families to use 529s for K-12, especially if funds are invested early.
• Mortgage Interest Deduction Stays Put: Despite talks of expansion, the cap remains at $750,000 for joint filers (or $375,000 for single filers).
• Estate Tax Exemption Raised: Now up to $15 million per person, or $30 million per couple.
• Win for Business Owners: The Qualified Business Income (QBI) deduction is now permanent. This allows many pass-through business owners—like sole props and S corps—to deduct up to 20% of qualified income.
• Above-the-Line Charitable Deduction Returns: Even if you don’t itemize, you can now deduct up to $1,000 ($2,000 for joint filers) in charitable donations.

If you're wondering how this might affect your 2025 plans—or if it’s time to revisit your tax strategy, we’re here to help.

Photo from Our Lives:

One of the best parts of summer? Slowing down, exploring new places, and spending time with the people who matter most. This month, we’re sharing a few snapshots from our team’s summer adventures.