Majority of Americans Back 'Trump Accounts' for Children's Education
A majority of Americans prefer using funds from a 'Trump account' for education, with trade school or college being the top choice. This comes as the government plans to invest $1,000 for each child born between 2025 and 2028, with the money accessible only when the child turns 18.
The 'One Big Beautiful Bill Act', signed by President Donald Trump in 2025, introduces these accounts. Families can open them and receive the initial government investment. Parents and relatives can contribute up to $5,000 annually until the child reaches 18, with the cap potentially adjusted for inflation after 2027. The funds grow through stock market investments, potentially compounding into a seven-figure nest egg by adulthood, as projected by the Treasury.
The idea of 'Trump accounts' is popular among Americans, with almost two-thirds liking the concept. This is particularly appealing given the struggle many face in saving for the future. One in three lack retirement savings, and 30% cannot cover an unexpected $500 bill. Even near or entering retirement, many have saved less than $150,000, including a majority over the age of 65. The 'Trump account' offers a new avenue for families to secure their children's financial future.
The 'Trump account' initiative aims to provide a financial head start for newborns, with education being the most preferred use of the funds. As Americans struggle with savings, this plan offers a potential solution, growing through market investments and allowing additional contributions from parents and relatives.
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