"But what if all children, regardless of their family's circumstances, could get a financial boost when they turn 18? That's the idea behind "Trump Accounts," a lesser-known provision of President Donald Trump's tax legislation. The bill, signed into law earlier this year, gives $1,000 to every newborn, so long as their parents open an account. That money is invested in the stock market by private firms, and the child can access the funds when they turn 18."
"Thanks to a historic donation announced Tuesday by billionaires Michael and Susan Dell, some children 10 and under could receive $250 in seed money if their parents open an account. That money is reserved for kids who live in ZIP codes with a median family income of $150,000 or less and who won't get the $1,000 seed money from the Treasury."
Trump Accounts create custodial savings vehicles invested in U.S. equity index funds on behalf of children. The U.S. Treasury provides a $1,000 seed payment for newborns whose parents open accounts during the Trump administration years. Parents of older children may open accounts but do not receive the $1,000 bonus. Funds are managed by private banks and brokerages, remain locked until the child turns 18, and can be used for tuition, starting a business, or making a down payment on a home. A separate Michael and Susan Dell donation provides $250 seed grants for certain children age 10 and under in qualifying ZIP codes.
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