Can a New Savings Plan Help Americans Grow Their Money?

A new savings initiative, called Trump Accounts, aims to help lower-income families build wealth. The program is part of a larger bill proposed by President Donald Trump. While the details are still unclear, financial experts have mixed opinions about its potential impact. Starting in 2026, the government plans to give $1, 000 to every child born between 2025 and 2028. This money will be invested in low-cost index funds and grow tax-deferred. Parents, guardians, or employers can add more funds to the account, up to $5, 000 per year. The Dell family has pledged to contribute $250 to the accounts of 25 million children. This money will go to children living in areas where the median family income is $150, 000 or less. The goal is to boost investment in the U. S. economy and teach Americans about compound interest. However, some experts are skeptical. They argue that the program is too broad and not targeted enough to make a significant difference. Others say it could be a good start, but only if families develop the habit of contributing regularly. The program also raises questions about tax implications and how the accounts will be managed. Financial firms are already lobbying to get involved. It remains to be seen whether Trump Accounts will truly help lower-income Americans build wealth.