Trump Accounts Money: Families in the United States are now hearing a big push to sign up for the new Trump Accounts. These accounts come from a government program that gives $1,000 for every child born from 2025 to 2028. The idea behind this plan is to help kids start life with some savings they can use later for school, health needs, or even adult life. The program also gets a huge money boost from Michael Dell, which makes many families pay even more attention to it.
How the Trump Accounts Work?
The Trump Accounts started after President Trump approved a big tax and spending package earlier this year. The accounts act almost like a retirement plan that starts the moment a child is born. Parents must register their child so the government can place the $1,000 in the account.
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One expert explained the idea in very simple words. Evan Morgan from Kaufman Rossin told USA TODAY, “It’s an IRA for kids,” showing how the account is supposed to grow slowly for many years until the child becomes an adult.
Parents can add their own money to the account if they want. They put in after-tax money, and when the child removes that part later in life, it stays tax-free. Any earnings from investments will get taxed when the child takes them out, so families need to think ahead.
Michael Dell’s Big Donation
Michael Dell, who is the CEO of Dell Technologies, said he will put more than $6 billion into the program. His goal is to raise the value of around 25 million accounts by about $250 each. He hopes other businesses copy his example and support the kids of the country too.
Experts say the money can grow a lot if it sits untouched for many years. The $1,000 could turn into a large sum when the child becomes older, simply because of compounding. Many financial planners believe this early start helps kids build a strong future.
Most rules say the child cannot use the money until they turn 18. After that, the account works like a normal retirement account, and the young adult can use it for school costs, buying a first home, or keeping it for retirement savings. When the child grows up, the Trump Account can also merge with other retirement accounts, which keeps things simple.
Some experts are unsure if parents should add extra money every year. They say the free $1,000 alone is already a strong benefit, and parents should at least make sure they claim it. But they also warn that adding more money means a very long commitment over 18 years.
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Some Critics Disagree With The Program
While many people support the Trump Accounts, not everyone likes the idea. Some critics believe the program is more political than helpful. They think the name of the account makes it feel like a campaign idea instead of a true financial tool.
Romina Boccia from the Cato Institute shared her strong opinion and said Trump Accounts are “a blatant giveaway, and a way for the Trump administration, in their hopes, to leave a permanent mark by naming a rather useless savings account after the current president.”
