Trump Accounts can help children become financially ‘well off’ before adulthood, expert says

WalletHub managing editor: ‘Anyone with a child could benefit’

Published: July 7, 2026 at 12:41 PM

SAN ANTONIO – Last week, 530A Accounts, commonly known as “Trump Accounts,” opened for families to invest money in their children’s future.

The accounts were launched on July 4 under the One Big Beautiful Bill Act, which was signed into law last year. Families can open an account for their children as long as they are younger than 18.

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John Kiernan, managing editor of WalletHub, said the account is similar to a traditional IRA or individual retirement account and is designed for families to invest into the market on behalf of their children. According to Kiernan, the account can help kids become financially “well off” before they become adults.

The 530A Account tracks major indexes, including the S&P 500.

Kiernan said families who invest the 530A Account maximum of $5,000 annually could help their children accumulate more than $100,000 by the time they turn 18.

“Anyone who contributes to this consistently over time will be able to take part of the rising tide of the stock market, which is good,” Kiernan said. “A lot of people are left out.”

Families can receive $1,000 from the federal government to invest in the 530A Account if their children were born between Jan. 1, 2025, and Dec. 31, 2028, are a U.S. citizen with a Social Security number and listed on a parent or guardian’s tax return.

The government projected a potential investment totaling in “$13 million by the time you’re 55,” but Kiernan suggested most maximum contributors will help their children be “well off after a long period of contributing.”

The money is supposed to stay in the account until the child turns 18. Funds can then be used for higher education, buying a first home and other qualified expenses under traditional IRA rules.

“It’s definitely something that anyone who has a child who’s under 18 should look into and contribute money to,” Kiernan said. “Anyone with a child could benefit.”

Kiernan encouraged parents to look into opening an account, even if they aren’t able to invest in directly.

According to Kiernan, “parents, grandparents, other relatives, friends, the child, employers, qualified nonprofit organizations” have the opportunity to help contribute to a 530A Account investment.