If Your Child Was Born This Year, They Can Receive a $1,000 Deposit

• New children’s savings accounts will provide $1,000
• Parents will be able to contribute more and build long-term savings
• IRS expected to publish rules before the program launches

Families with babies born beginning in 2025 will have access to a new savings program created under the “One Big Beautiful Bill” law.

The federal government will issue an initial deposit of $1,000 for every qualifying child and will allow parents and employers to add more funds during the first years.

The goal is to promote long-term savings and connect American children to stock market growth from birth through these child savings accounts 2025.

Children’s Savings Accounts: How the Trump Accounts Work

Children’s savings accounts, known as Trump Accounts under the new law, are investment accounts designed for minors under 18.

They function as savings vehicles with tax advantages.

The money cannot be withdrawn until the child turns 18. After that age, the funds may be used for education, housing, or starting a business.

• The government will make an initial $1,000 deposit for each eligible account.
• Parents may contribute up to $5,000 per year, and relatives or friends can also contribute within the same limit.
• These contributions are not tax deductible, but investment gains will grow tax-free until withdrawal.

The children’s savings accounts track a stock market index, meaning growth will depend on overall market performance.

With steady contributions, the total can increase significantly over time.

Employers can also participate:

• Employers may contribute up to $2,500 per year to the child’s account.
• This contribution does not affect the employee’s taxable income, creating an additional incentive for companies to participate.

Financial Benefits for Families — Who Qualifies?

Financial benefits will be substantial for families who meet the requirements.

Eligible children must:

• Be born between January 1, 2025, and December 31, 2028
• Have a Social Security number

Once the account is created, the initial deposit is activated automatically.

These benefits are intended to ensure that children start life with an investment foundation.

According to the Council of Economic Advisers (CEA), a baby born in 2026 could accumulate:

• $303,800 by age 18
• Over $1 million by age 28, if maximum yearly contributions are made

Even without additional contributions, a child could end up with $5,800 to $18,100, according to official projections.

Treasury Secretary Scott Bessent told Fox News that every child born “starting January 1 over the next three years will have a government account that invests in the stock market.”

Thanks to the One Big Beautiful Bill, every American child born over the next three years will receive a government investment account that grows in the stock market. When these young Americans turn 18, they will be able to access this account, learning the power of compounding… pic.twitter.com/EwM73bq43E

— Treasury Secretary Scott Bessent (@SecScottBessent) November 19, 2025

Parental or guardian authorization will be required.

Impact on the Latino Community

For Hispanic families, these children’s savings accounts can become a meaningful tool for building wealth.

Many Latino households face variable income or immediate expenses that make long-term saving difficult.

The federal initial deposit ensures that all eligible babies start with a foundation, even if their parents cannot contribute extra.

The program also offers an accessible path to long-term financial growth without requiring advanced investment knowledge.

Projections show that even with minimal contributions, the balance can multiply over time—particularly benefiting working families seeking stability for their children.

Employer contributions can also support Latino workers in sectors where financial benefits are often limited.

If companies choose to participate, the program becomes an additional tool to support employees and improve their household financial stability.

What Experts Say About Financial Benefits for Families

Evan Morgan, a tax advisor, told US News:

“It’s almost like a retirement account for kids. You’re basically creating an IRA for your child without them having to work.”

David Solomon of Goldman Sachs said:

“This initiative connects future generations with the benefits of the U.S. markets.”

What’s Next

The accounts will be available starting July 4, 2026.

The IRS will publish detailed rules before that date so families know how to open accounts, request the initial deposit, and report contributions.

Preliminary guidelines are expected in 2025 so parents and guardians can prepare in advance.

The new policy aims to transform how children in the United States build their financial future through these children’s savings accounts.