Your money, explained simply.
A simple explainer with the real facts. If you want even more detail, a grown-up can check the full parents' guide.
What is a Trump Account?
It's a special savings account the government helps set up for kids under 18. It's kind of like a piggy bank, except instead of holding coins, the money goes into something called an “index fund” — that's a way of owning a tiny piece of hundreds of American companies at once. When those companies do well, your money can grow over time. It became available to families starting on July 4, 2026.
Where does the money come from, and how much can go in?
A few different people or places can put money in: the government (kids born 2025–2028 can get a one-time $1,000 starting deposit, but a parent has to sign up for it first), parents or family members (anytime during the year), and sometimes a parent's employer (up to $2,500/year). All together, the most that can go in from parents and employers combined is $5,000 a year. Money from charities or the government's $1,000 doesn't count toward that limit.
What can the money be invested in?
By law, the money can only go into low-cost funds that track big groups of U.S. companies — not individual stocks, not bonds, and nothing risky like borrowed money. The fees on these funds are capped very low too, at just 0.10% a year, so more of your money stays invested instead of going to fees.
Can I use the money now?
Nope, not yet! The money stays locked in the account until the year you turn 18. Think of it like planting a tree — you don't cut it down right away, you let it grow for a long time first. There are only a couple of rare exceptions before then.
What happens when I turn 18?
The account turns into a regular retirement account (called a “traditional IRA”), and the rules loosen up a lot. You'll be able to use it for college, a first home someday (up to $10,000 without an extra penalty), retirement, or just leaving it invested so it keeps growing. Here's the catch: when you take money out, most of it counts as regular income and gets taxed, and if it's before age 59½ for a reason that isn't on the approved list, there's usually an extra 10% penalty too.
What can I do right now?
Even though you can't touch the money yet, you can still ask a parent or guardian to show you how much is in the account and how it's grown, learn the difference between “saving” and “investing,” and get excited about watching it grow — a little bit now, left alone for 10+ years, can turn into a lot more later thanks to something called “compound growth.”