Many of you may be participating in the Children’s Trump Accounts. On October 7, President Trump announced a couple of new updates to those accounts making them an even sweeter deal. If you have eligible children who are not participating, you may waiting for a little more clarity. Let’s look at why signing up your eligible kids for this opportunity should be a no-brainer.
Last July, the Trump Administration rolled out a new program to encourage America’s youngest children to learn from personal experience the advantages of savings and investments. They would actually invest their own money initially supplied by the government. This program would also help our nation’s youth better understand the economy, capitalism, compound interest, and the advantages of saving. “Seed money” of $1,000 from the government was made available to every citizen born during Trump’s current term, January 1, 2025 through December 31, 2028. Parents had to simply set up a Trump Account and request the initial government deposit.
President Trump announced on October 7 that accounts were now being set up automaticially for every American from birth to 18 years of age–all 70 million of them. Only those born in the original four-year term ending in 2028 would receive the $1,000, but everyone under 18 would have an automatic account. Parents only have to claim the account to activate it. Children born before 2025 up to age 18, although not receiving the initial $1,000, can receive total deposits of up to $5,000 per year from contributing relatives, friends, employers, etc., and the account withdrawals are tax-free. There are several optional index funds in which to invest including the S & P 500. Again, as of today, every American child under 18 with a Social Security number has an account already set up. Children born between now and December 31, 2028 who acquire a Social Security number will have accounts set up automatically awaiting activation by their parents for the $1,000 deposit.
All deposits are from the U.S. Treasury, held with the Bank of New York Mellon until invested, and invested through Robinhood Securities as the initial brokerage and trustee.
Parents or legal guardians should download the Trump Account app to claim and activate these accounts (see app image below).
Approximately seven million children have been born since January 1, 2025. Unfortunately, not all of those have activated a Trump Account. Another seven million births are expected by December 31, 2028. So, there is a potential government investment of $14 billion into the lives of America’s children during the four-year period. The government estimates there are about 73.4 million children under 18 who are currently elegible for Trump accounts with no seed money.
Another interesting and exciting announcement on October 7 was that private charities and nonprofits could contribute to large, broad groups of children with those contributions not counting against the $5,000 annual limit. For example, Michael and Susan Dell (Dell Technologies) pledged $6.25 billion to benefit approximately 25 million children in certain qualifying groups. That is $250 per child. Some 100 other billionaires and large corporations are considering these types of donations.
Children who receive the $1,000 at birth with seven percent interest and nothing added would have about $3,400 at age 18. With $100 per month added up to age 18, they would have about $44,000. With the maximum of $5,000 per year added up to age 18, they would have about $173,000.
Children’s Trump Accounts are a win-win for every parent. Every age-qualified child has $1,000 awaiting for a parent or guardian to claim and activate his or her account. Every child under 18, but not qualified for the $1,000, still has a tax-free savings account waiting. That account could receive deposits from a relative, a friend, an employer, or even one of those billion dollar benevolent donors that could include the child in their qualification group. What if Ford Motor Company decided to donate to the Trump Accounts of all Ford owners’ kids?!
Please pass this information on to all who might need it.
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