Scott Bessent is encouraging relatives to rethink birthday and holiday spending: skip the toys, he said, and put that money into children’s new investment “Trump Accounts” designed to grow over time.
“If relatives, rather than giving a toy for a birthday or a holiday, they can contribute to these accounts,” Bessent said in a TV interview, framing the program as a way to give kids an early financial head start. (WGME)
What are “Trump Accounts”?
According to the Internal Revenue Service, Trump Accounts are a new type of tax-advantaged account that can be established for a child under 18 who has a valid Social Security number. (IRS)
A pilot feature provides a $1,000 government contribution for children born between Jan. 1, 2025, and Dec. 31, 2028 (and who meet the eligibility requirements). (IRS)
How families can contribute (and when)
The U.S. Department of the Treasury says most families can claim the initial government deposit by making an election on IRS Form 4547. (U.S. Department of the Treasury)
Additional contributions from family and friends are expected to open up later this year. Treasury has said that starting July 4, 2026, family, friends, and employers will be able to contribute up to $5,000 per year to a child’s account. (U.S. Department of the Treasury)
A The White House fact sheet has described the funds as being invested in a broad stock-market index, with the account remaining under guardian control until age 18. (The White House)
Employers and donors are jumping in
At a recent rollout event covered by Reuters, the administration urged companies to support the accounts, and some large employers have announced matching contributions for employees’ children. (Reuters)
Treasury has also highlighted major philanthropic pledges—most notably from Michael Dell and Susan Dell—as part of a broader push to expand participation. (U.S. Department of the Treasury)
Supporters’ pitch — and critics’ warning
Supporters say the accounts could help more families build long-term savings and financial literacy, especially if relatives and employers contribute regularly. Treasury argues the program is meant to widen access to investing and ownership. (U.S. Department of the Treasury)
Critics, however, argue the biggest gains will likely accrue to households that can afford to contribute the maximum amounts year after year, potentially widening wealth gaps even if every eligible child receives the initial $1,000 seed. (The Associated Press)
