Should I open a Trump Account for my kids?

Thinking about retirement…for your infant? Trump Accounts officially launched on July 4th as an investment option that will help you start that journey. All U.S. citizens under 18 are eligible to participate, but children born between 2025 and 2028 can receive an initial $1,000 deposit from the Treasury upon opening an account. 

The tax-advantaged Trump Accounts are designed for long-term investing. Once your child turns 18, the account transfers to their control and operates like a Traditional IRA, with penalty-free withdrawals for approved uses like education and first-time homebuying. 

To open an account, parents can complete Form 4547. An additional opt-in is necessary to receive the initial gift for eligible kids. Parents can easily manage the investment through the Trump Accounts app.

The money will be invested in low-cost funds that track the performance of the S&P 500, and total contributions can amount to $5,000 annually. But if you never add a penny to the $1,000, the Trump Accounts website estimates it could grow to $6,000 by age 18 and roughly a quarter-million dollars by age 55. 

Should I open an account?

Trump Accounts, also known as 530A accounts, are a direct result of last year’s One Big Beautiful Bill. Unfortunately, naming the accounts after the President will certainly dissuade some families from enrolling. Regardless of your perspective on the current administration, the investment opportunity should at least be considered because of its potential for a generational impact on your family.

So, is opening a Trump Account the best option for investing in my child’s future? Not definitively. If your focus is on saving for higher education, a 529 plan would be more advantageous. If your child has a form of earned income, a Roth IRA has greater tax savings and can better accomplish short-term goals. Picking the best investment for your kids depends on the circumstances.

Trump Accounts are an accessible option for broader intentions and longer-term outcomes. For children born between 2025 and 2028, opting in for the $1000 is a no-brainer, even if you focus most of your investing elsewhere.

For a more granular examination, visit the Bipartisan Policy Center’s overview here.

Investing in our Children

Trump Accounts represent a crossroads between financial stewardship and investment in our children, two topics that Scripture covers exhaustively. 

Stewardship is a concept that shows up as early as Eden, when Adam and Eve are entrusted with dominion over the earth (Genesis 1:28). Everything we have in this life, from our bodies to our time, talents, and relationships, is on loan to us. God owns it all (Psalm 24:1). 

While there are a variety of applications for stewardship, two primary lanes are emphasized throughout the Bible for the believer:

• Financial stewardship: The Proverbs are filled with sayings relating to saving, budgeting, and debt avoidance (Proverbs 13:11; 21:5; 22:7). Jesus speaks of preparation and the importance of counting the cost (Luke 14:28), including and beyond finances. But it is radical generosity, accompanied by a freedom from the love of money, that is so central to understanding Scripture’s outlook on finances (2 Corinthians 9:7; Hebrews 13:5). 

• Gospel stewardship: Our head, heart, and hands should be marked by the transformative work of Christ. To live as his ambassadors (2 Corinthians 5:20) is to make the most of Jesus in whatever context you exist by whatever means possible. The apostle Paul talks about his own stewardship of the gospel on several occasions (1 Corinthians 4:1; Ephesians 3:2; Colossians 1:25). Peter calls us “stewards of God’s varied grace” in 1 Peter 4:10, reminding us that our gifts and abilities have been entrusted to us for God-glorifying work.

Both financial and gospel stewardship are critical for understanding a biblical approach to investing in your children. 

Seeking out financial growth can be an act of wisdom or an act of greed, depending on the individual’s motivations. In our scenario, setting aside money to grow for your child’s future is selfless, not greedy. 

Great as Trump Accounts, 529 plans, and Roth IRAs might be, they should take a backseat to spiritually investing in your children. Passing down finances is valuable, but passing down eternal wisdom is priceless. 

Psalm 78:6-7 speaks of the importance of passing down the mighty works of God that “the next generation might know them, the children yet unborn, and arise and tell them to their children, so that they should set their hope in God and not forget the works of God, but keep his commandments”.

Our great desire for our children should be to see the gospel take root in their hearts that they might “set their hope in God.” What does it look like for you to invest in your children this week?