Episode Details

Starting July 4th, kids under 18 can get a new government-backed savings tool called the Trump Account — think of it as a retirement account for children. The government kicks in $1,000 for kids born between 2025 and 2028, and parents, guardians, or employers can add up to $5,000 annually (employers have a lower cap). Funds must be invested in approved mutual funds or ETFs until the child turns 18, after which it behaves like a regular IRA. Administered by Bank of New York Mellon and Robinhood, the program aims to instill lifelong saving habits. Six million people have already signed up — and the big draw? That free $1,000 boost. Withdrawals are locked until age 18, with penalties for early access. Contributions aren’t tax-deductible for the parent, but the child benefits later — so compare options before you sign up.

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