Should you sign your kids up for Trump Accounts? Four things to consider

Key Points:

• Trump Accounts, approved as part of the One Big Beautiful Bill Act, are new investment accounts for American children under 18, allowing them to access funds at age 18 for education, housing, or other expenses, with contributions invested in a broad stock market index fund.
• Children born between 2025 and 2028 receive an automatic $1,000 federal government seed contribution, which could grow to nearly $4,000 by age 18 assuming an 8% return, while some children under 11 may receive $250 from donations by Michael and Susan Dell if they meet income and location criteria.
• Employers like Micron, Mastercard, Uber, and Visa are offering contributions or matching donations to employees' children's Trump Accounts, with some small businesses also participating as a community support initiative.
• Financial advisors recommend parents prioritize their own retirement savings before contributing to Trump Accounts to avoid future financial stress and suggest considering 529 education savings plans as a complementary option for tax-free education funding.
• Trump Accounts can be especially beneficial for lower-income families by providing a centralized digital "donation bucket" that accumulates contributions, potentially giving children a significant financial boost as they start adulthood.