Your Survival Guy is a big proponent of teaching your children and grandchildren the value of saving and compounding early on in life. With the passage of the One Big Beautiful Bill Act and its enactment into law, Americans have a new savings vehicle they can use to do just that. The new accounts, known currently as Trump Accounts, but previously called MAGA Accounts, will be available to Americans or permanent residents under 18 years old with at least one parent with a valid Social Security number. Fidelity describes the new accounts like this:
The legislation includes a savings account called the Trump account fundable up to $5,000 a year, treated similarly to a nondeductible traditional IRA contribution for parents or other individuals. Contributions can be made by parents, relatives, or any other “taxable entity,” according to the legislation, until age 18, at which point the account would effectively convert to a traditional IRA. Parents of newborns born between January 1, 2025, and December 31, 2028, would also qualify for $1,000 in federal seed money to start the account. Although not income-restricted, Trump accounts are similar to Connecticut Baby Bonds, which invest $3,200 into accounts for newborns of lower-income parents.
Action Line: When you want to talk about saving for your children and grandchildren, and your retirement, email me at ejsmith@yoursurvivalguy.com. And click here to subscribe to my free monthly Survive & Thrive letter.
President Trump’s $1,000 Baby Account, thanks to the One Big Beautiful Bill, doesn’t replace Social Security—it supplements it.
Every newborn becomes a stakeholder in America’s future.
Compounding wealth, not government dependence. pic.twitter.com/ixdJSsYhrF
— Treasury Secretary Scott Bessent (@SecScottBessent) July 31, 2025
