Parents of babies born between Jan. 1, 2025, and Dec. 31, 2028, can soon open a Trump Account — also known as a 530A account — and receive a $1,000 federal contribution to help build long-term savings.
The accounts officially open July 4. According to the Trump Accounts website, parents can contribute up to $5,000 each year after the initial government-funded contribution.
“The government gives them a $1,000 nest egg to start with — why wouldn’t you do that?” said Chase Peckham of the San Diego Financial Literacy Center.
Peckham said parents can decide later whether they want to continue contributing to the account.
“Then you’re going to have an opportunity to make the decision down the road of whether you want to contribute to it or not,” Peckham said.
For San Diego father Nick Samarco, the program could make it easier to begin saving for his children’s future.
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“Setting aside money sometimes seems kind of impossible. So I think it’s nice to have that like, all right, you know, we have, we have something and now all we need to do is just a little bit at a time. And I think it makes it way less kind of overwhelming,” Samarco said.
Take a look at how a $1,000 investment could grow over time with an expected 10% compound interest:
- 20 years: $6,272.50
- 30 years: $17,449.40
- 40 years: $45,259.26
- 50 years: $117,390.85
- 60 years: $304,481.64
The plan is intended as a long-term investment, but children can cash out after turning 18.
Families with children born between 2016 and 2024 may also qualify for a separate $250 contribution through a private pledge by the Dell Foundation. To qualify, families must live in a ZIP code with a median income of $150,000 or less.
Even if a child does not qualify for either contribution, Peckham said opening an account and contributing what a family can afford may still be worthwhile.
“And as you’re going, you’re making a little, you get a raise. You make a little bit more money. You come into money. You can make that decision to increase that investment as you go forward,” Peckham said.
NBC 7 Responds previously reportedon other investment options for children that might be worth a look to some parents.
Remember, to avoid impostor websites and deal directly with the officialTrump Accounts portal.
This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication.
