Trump Accounts: A Stewardship Opportunity for the Next Generation

Proverbs 13:22 reminds us that “a good man leaveth an inheritance to his children’s children.” That inheritance is far more than money. The greatest legacy we can leave is faith in Christ, a biblical worldview, wisdom, character, and a life that points the next generation toward God. But financial stewardship can also be one practical way we help prepare those coming behind us.

Beginning July 4, 2026, a new savings vehicle called a Trump Account is expected to become available for children under age 18. These accounts are a type of traditional IRA created for minors. Eligible U.S. citizen children born from January 1, 2025, through December 31, 2028, may receive a one-time $1,000 federal contribution from the U.S. Treasury. Parents, grandparents, employers, and others may also be able to contribute, generally up to $5,000 per year, subject to the rules.

During childhood, the money must generally be invested in low-cost index funds or ETFs that track broad U.S. stock indexes. The funds are intended for long-term growth and are generally restricted until the child reaches age 18.

Is this a good fit? It may be worth considering for families who want to encourage long-term saving, investing, and ownership. Grandparents may especially appreciate a tool that allows them to plant a financial seed early and teach biblical stewardship along the way.

However, it may not be the best tool for every goal. If the primary purpose is education, a 529 plan may offer better tax advantages. For broader flexibility, an UTMA/UGMA custodial account may be useful. For working teenagers, a Roth IRA may be even more attractive.

As always, seek wise counsel. The goal is not merely to leave money, but to leave wisdom.

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Steve Crawley, PhD

BMA Financial

Executive Director