Trump savings accounts for children

Child savings accounts with federal backing
Automatic investment from birth
Long-term tax benefits

Saving for children’s futures is a shared goal for many families, but it is not always easy to put into practice. Between daily expenses, housing, healthcare, and education, long-term savings often take a back seat.

With the arrival of a new federal program, that reality could begin to change. Starting July 5, 2026, the so-called Trump Accounts go into effect—a new savings tool designed exclusively for minors.

What Are Trump Savings Accounts and Who Are They For?

Trump Accounts are part of the Working Families Tax Reduction Act. They allow parents, guardians, or other authorized adults to open a savings and investment account in a child’s name.

The proposal seeks to give children an early advantage from birth or early childhood by combining an initial government contribution with long-term investment growth.

According to official information, this is an instrument designed so time works in the child’s favor and the money grows over the years.

cuentas Trump, Trump savings accounts for children — Trump savings accounts for children – PHOTO: Shutterstock

The main requirement is that the child must not have turned 18 before the close of the tax year and must have a valid Social Security number. Only one account is allowed per child.

One of the most notable aspects is a Treasury pilot program that includes a one-time initial contribution of $1,000 for children born between January 1, 2025, and December 31, 2028.

“The goal is to give the next generation a head start in saving from the very beginning,” the official program description states.

How the Account Is Opened and How the Money Is Invested

The process to open a Trump Savings Account is straightforward. The first step is making the corresponding election when filing the child’s tax return.

TRUMP ACCOUNTS: JUMPSTARTING THE AMERICAN DREAM!https://t.co/F0ZOJszJA9 pic.twitter.com/H0xyD3zHb5

— The White House (@WhiteHouse) December 2, 2025

Once the election is made, an authorized financial institution receives the funds and activates the account. From that point forward, the money is invested automatically.

The accounts are designed to function as long-term investment vehicles, with funds placed in U.S.-based companies.

In addition, an app will allow families to see which stocks are included in the account and how the investment performs over time.

Contributions, Growth, and Use of the Funds

Families can contribute up to $5,000 per year to a Trump Savings Account, although doing so is not mandatory. Even without additional contributions, the balance can grow through market performance.

“The power of time in the market is key,” the official site notes, emphasizing that early saving can make a significant difference over the long term.

When the child turns 18, the savings account becomes fully theirs. At that point, they can choose to keep the money invested or withdraw it for major expenses.

Permitted uses include education, purchasing a home, or other financial goals, with tax benefits similar to those of a traditional IRA.

Long-Term Savings Projections and Key Considerations

According to official estimates, a child who only receives the initial deposit could have around $5,800 by age 18.

If the family contributes $250 per year, the estimated amount could exceed $20,000. With maximum contributions, the projected figure is significantly higher.

ahorro a largo plazo — Trump savings accounts for children – PHOTO: Shutterstock

Authorities clarify that these projections are illustrative and based on historical market averages. “Actual results may vary and are not guaranteed.”

Even so, for many families, Trump savings accounts for children represent a concrete opportunity to begin building their children’s financial future from an early age.