Trump Accounts for Children

Commentary

All Americans with children should activate their “Trump accounts” for their kids.

More than 60 million American children under 18 have been enrolled in the program as of Oct. 1, 2026. The children were enrolled using their Social Security numbers. Accounts come with an initial donation of up to $1,250 from the federal government ($1,000) and the Michael Dell family ($250).

The amount depends on the child’s age and is explained below. These accounts are a great way to invest in your children’s long-term financial future and teach the whole family about investing.

The adult’s process in opening the account is simple. The child’s account already exists and just needs the parent/guardian to activate it. The parent/guardian will act as the administrator or custodian of the account for the child. Being an account administrator/custodian sounds complicated, but in this situation it is easy. The government and private investment firms do 99 percent of the work.

The government makes contributions automatically once the parent/guardian confirms the child is eligible for the funds and requests the contribution.

Parents, grandparents, friends, and others can also make additional personal contributions. Those individuals give the money to the parent/guardian to put in the child’s Trump account. The parent/guardian puts the funds into their own ATM bank account and uses their ATM card on their smartphone to transfer the funds into the child’s Trump account.

It is as easy as making an Amazon purchase online. The funds show up on your phone immediately. You can track the account on your phone or computer as often as you like. Short-term and long-term account results appear online.

These accounts are a special type of IRA for children. The child owns the account, but a parent or authorized adult administers it until the child turns 18. Account funds are invested mostly in broad index funds by large, solid investment firms. Warren Buffett and many other investment “experts” have strongly touted this index fund-based investment style.

Funds cannot be withdrawn until age 18. The parent/custodian cannot withdraw the funds for personal use. Annual expenses are very low, at no more than 0.1 percent. The funds grow tax-free. Taxes are charged at withdrawal per usual IRA rules.

The investing plan is simple. Investing so early in the child’s life gives the funds decades to grow through market advances and compounding. At 9 percent annual growth, money doubles every eight years. A single $1,000 investment would grow to $4,939 over 18 years.

Children have a huge time advantage over adults when it comes to investing. Even at a 7 percent average return, $1,000 would grow to $3,380 over 18 years. Amazingly, investment calculators show that investing $250 annually for 55 years at 8 percent per year would grow to $229,000; $1,000 annually to $917,000; and $5,000 annually to $4.31 million. The numbers could be higher or lower depending on investment returns.

The key is early, steady investing. This is one race where the turtle beats the hare if the turtle starts early enough.

One concern is that an 18-year-old may not be responsible financially when they assume control of the account. Eighteen-year-olds are old enough to drive, join the military, and leave home. If they waste the money, it’s on them. Better that they learn early the effects of making bad financial decisions. They have time to recover.

Young adults of all economic backgrounds have drug and alcohol overdoses, electric bike accidents, car accidents, and make other bad lifestyle decisions. We can only protect them so much. Denying them a path to the American dream will not improve outcomes for the vast majority. It is up to the parent/guardian whether to participate in this account for their child.

The $1,000 federal contribution for babies is approved from 2025 to 2028. This is for children born on or after Jan. 1, 2025. The government will need to vote in the future on whether to continue these contributions after 2028.

The $250 Michael Dell family contributions apply to children born between 2016 and 2024. He contributed $6.25 billion to the government for these donations. The children must live in zip codes with median family incomes below $150,000. For example, children in Beaverhead County, Montana qualify.

Elon Musk just announced plans to donate one share of SpaceX stock to each child of a Trump account. That is probably about a $10 billion donation. Musk said this is just the start of his donation. He loves this program.

Other billionaires said they will make major contributions in the near future. This is a great way for them to give back to America. Parents, grandparents, friends, corporations, and certain nonprofits can contribute up to $ 5,000 per year total among all donors. Private family funds can be transferred through the child’s parent or another authorized adult into the child’s account using the adult’s ATM bank card.

These accounts are a much better investment for young children than Social Security. Social Security returns 1 to 2 percent annually, versus 7 to 9 percent long-term for most broad index funds. Social Security returns may decline as the Social Security trust fund is projected to run out of money in 2032. Social Security returns may be reduced by 20 percent or more. These Trump IRA accounts can serve as a superior supplemental retirement account for these young people.

Everyone wins.

These accounts had a rocky start politically. President George W. Bush tried to start these childhood accounts during his time in office but couldn’t get them through Congress. In 2025, the account legislation passed the House and Senate with 100 percent Republican votes and zero Democratic votes. President Donald Trump signed the bill into law.

Since then, everyone has realized the value and beauty of these accounts. Even Democratic California governor Gavin Newsom has come out in strong support of the program. Something all Americans can finally agree on!

These accounts benefit children and America. Over time, children can learn about saving, investing, long-term financial thinking, and other aspects of the free market system. They know they are owners and players in our capitalist economy and get a feel for how our country works. The accounts benefit all Americans by providing businesses with new capital to grow, create jobs, and build wealth for the younger generation.

Views expressed in this article are opinions of the author and do not necessarily reflect the views of The Epoch Times.