Hey Taylor — My sister keeps telling me I need to open one of these new Trump Accounts for my son since he was born this year. I don’t really understand what it does or if it’s worth the trouble. Should I look into it? – Colton

Hey Colton – Congratulations on your son! These new accounts caught a lot of attention this summer, and it makes sense that you’d want to understand what you’re signing up for before you commit any time to it. The short version is that it’s a long-term investment account for kids, and for many families, it can be worth a look.

  1. Check if he qualifies for the deposit. Kids born between January 1, 2025 and December 31, 2028 with a valid Social Security number may be eligible for a one-time $1,000 deposit from the federal government into one of these accounts. That money may go into the account on his behalf at no cost to you, so it can help to look into the paperwork sooner rather than later.
  2. Know what the money is generally intended for. This isn’t meant to function like a fund you’d pull from for everyday expenses. The account is generally designed to grow until he’s older, and withdrawals tend to be limited to things like education costs, a down payment on a first home, or starting a business once he’s an adult. It can help to think of it more as a head start on his future than a rainy day fund.
  3. Consider whether adding more makes sense for your family. Beyond the initial deposit, family members may be able to contribute additional money each year up to a set limit, and some employers are offering to match contributions too. If you’re already putting money toward a savings account or a 529, it can help to think about how this one might fit alongside those rather than replace them. There’s no need to decide everything right away, and giving it some time before adding extra money can be a reasonable approach too.

Setting up an account for your son doesn’t have to take long, and the possibility of free money attached can make the paperwork feel more than worth it. Congratulations again, and thanks for the question!

Taylor Kovar, CFP®

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