The start of 2025 means new laws in California are set to be introduced. These laws will shape the way families manage their finances and savings. This includes changes that could potentially impact your personal savings goals, from tax-related shifts to child welfare protections. Governor Gavin Newsom and state lawmakers have signed several pieces of legislation into effect this year, and among them are provisions that aim to address issues of financial security and savings.
Paid family leave and disability benefits
One of the most significant changes affecting California families in 2025 is the increase in paid family leave and disability benefits. Starting January 1, 2025, California will increase the wage replacement rate for these benefits from 60-70% to 70-90%. This change is part of Senate Bill 951 (SB 951), authored by Senator Maria Elena Durazo, and it will allow workers to take more time off to recover or bond with a newborn without the financial stress that often accompanies extended leaves.
For, this means a better safety net during life events like illness or childbirth, making it easier to manage finances during a leave of absence. Additionally, the new law prohibits employers from requiring employees to use vacation time before they can access paid family leave, further easing the financial burden.
New laws protecting child influencers in the digital age
Another law impacting savings for families is the expansion of protections for child influencers. With the rapid rise of social media and online content creation, many children are making significant earnings from platforms like YouTube or Instagram. Assembly Bill 1880 and Senate Bill 764 extend California’s Coogan Act protections, which were originally designed for child actors, to cover children and teens who post online content.
These laws require parents or guardians to set aside a percentage of the earnings from their child’s online presence into a trust. When these children reach adulthood, they will have access to these funds. For families relying on their children’s online success, this law provides an important layer of financial security and ensures that their earnings are managed responsibly.
It also helps to protect young influencers from potential financial exploitation, offering a safeguard for their future well-being. By ensuring that a portion of their earnings is saved and protected, this law aims to prevent misuse of funds before the child is of legal age to manage them independently.
Increased protections against medical debt
For many individuals and families, medical debt is a significant concern. Many are struggling with medical expenses from years ago, however, Senate Bill 1061 offers a much-needed relief. Starting in 2025, this law will prohibit consumer credit agencies from including medical debt on credit reports. In the past, medical debt could severely impact a person’s ability to rent an apartment, secure a loan, or buy a car.
With this new law, families won’t have to worry about medical bills hindering their credit scores. The change is especially important for families who face unexpected medical emergencies, as it ensures that their financial records are not unfairly damaged by healthcare costs. Families are able to not be completely derailed and have their lives turned upside down because of medical expenses and can instead continue with their lives while paying off their debt.
As California moves into 2025, these new laws will provide families with better financial protection, whether through increased paid leave benefits, stronger savings mechanisms for child influencers, or protection from medical debt. While it’s always important to stay updated on new laws, these particular changes aim to make life easier for families who often juggle both personal and financial challenges. Understanding these laws and how they apply to your unique situation will be crucial to ensuring that your family can take full advantage of the opportunities and protections now available.
