President Donald Trump is launching Trump Accounts to give some children investment money and offer families a new savings option.
The Trump Accounts open Friday, July 4, and the administration said the focus is boosting financial independence for American kids.
For children born between Jan. 1, 2025 and Dec. 31, 2028, the account includes $1,000 from the government.
“If you have a child that’s born and a new baby, the government’s giving you 1,000 dollars, so why would you not take the 1,000 dollars,” said Nicole Middendorf.
Children born between 2016 and 2024 do not qualify for the $1,000 contribution. The White House said they could get $250 if they live in a ZIP code where the median income is $150,000 or less through a $6.25 billion pledge from tech CEO Michael Dell for the first 25 million kids who sign up.
Minneapolis mom Christina Santos said she plans to save her money elsewhere for the future.
“I’m a little skeptical at the news, with that being said whoever needs this assistance I hope that it works out for them, but honestly feel skeptical about it,” said Christina Santos.
For kids under 18, family, friends and relatives can contribute up to $5,000 a year into a child’s Trump Account. Middendorf said she also opened an account for her 16-year-old daughter and said it took minutes to create.
“We also went online for her with the trump account, so she got a notification saying simply she qualifies,” said Nicole Middendorf.
Middendorf said Minnesota families should focus on a Roth IRA and 401(k) before putting money into these accounts. She said families with a child born during Trump’s second term should still sign up for the free $1,000.
“Max out your own Roth IRA, max out your own 401K plan, but go to the trump accounts online, sign up, because if you have a newborn, you get 1,000 dollars for free,” said Nicole Middendorf.
Treasury Department figures show more than 6 million kids have already signed up.
