TRUMP ACCOUNTS: For Kids' and Grandkids' Future
By Frost McGahey
This week reporters on the Fox Business Channel were busy opening Trump Accounts for their children. They were not alone; more than 6 million families have signed up.
What are they?
The Big, Beautiful Bill authorized the creation of the TrumpAccounts. This allows parents, relatives, and friends to establish a fund invested in the American stock market.
Who is Eligible?
First: Children born between January 1, 2025, and December 31, 2028, are eligible to receive a one-time $1,000 contribution from the U.S. Treasury. They must be a U.S. citizen and have a social security number.
Secondly: Any child up to the age 17 with a Social Security number. There are no income restrictions, and the child does not need to have earned income. However, they don't get the $1,000 contribution. Parents, relatives, friends can contribute up to $5,000 a year to the child's fund until age 18.
Where is the Money Invested?
The accounts are invested in the S&P 500 which is made up of the 500 largest companies America. The top 10 are: Apple, Google, Microsoft, NVDIA, Amazon, Broadcom, Meta, Berkshire Hathaway, Tesla, and JP Morgan Chase.
What happens at Age 18?
The child can use the money for education, starting a business, buying a house or paying for a wedding. There is no requirement that it used be for schooling. Or it can be turned into a IRA for retirement.
It has been calculated that if the $1,000 is left to grow, the child could have $18,000 at age 18. For the others, according to Fox Business Channel, if the $5,000 maximum is put in every year, it could reach $300,000.
How to Do It
Go to TrumpAccounts.gov. The information on eligibility, safeguards, and program features is listed. To open an account one needs an app and this site links directly to major app stores where parents can download the official Trump Accounts app.
Once an account is opened, all that is needed is:
Child's Social Security number
Child's date of birth and address
The entire process should take 5 to 10 minutes.
The parents are the sole custodian until the child turns 18.
From the TrumpAccounts website: "Once enrolled, parents can contribute immediately, and children will be able to track their investments beginning Monday, July 6. Simple performance graphs in the app will help young account holders see how saving and investing over time can build meaningful resources for education, entrepreneurship, homeownership, and retirement.
"On the 250th anniversary of the founding of the United States, the U.S. Department of the Treasury is marking a historic milestone with the nationwide launch of Trump Accounts, an innovative savings and investment platform designed to ensure that future generations of Americans own a stake in the American economy from day one."
Purpose of the Program
The program has several goals:
Encourage families to begin saving early for their children's future.
Expand ownership of investment assets among American families.
Promote financial literacy.
Give every child an opportunity to begin adulthood with invested savings.
