#child-savings-accounts

#child-savings-accounts

Trump Accounts-yes, that is the official name-function basically as individual retirement accounts for kids. Any parent or guardian can open one up for a child starting in 2026, and family, friends, and employers can contribute $5,000 total each year. These accounts will then be invested in index funds, and withdrawals are largely prohibited until the child turns 18. All American children born from January 1, 2025, to December 31, 2028, will be entitled to a onetime $1,000 contribution from the government.

These accounts are intended to operate as long-term, tax-advantaged investment vehicles or savings accounts, in which the federal government will put $1,000 per child (born during Trump's second term) to work. Via the power of compounding, the hope is that this $1,000 the government invests in our youth of today will turn out to be a much more meaningful sum 18 years (or longer) down the line,