Your child may already have an investment account
Originally published on Substack
On October 1, the U.S. Treasury said it had finished automatically enrolling more than 60 million children in Trump Accounts. If your child is under 18 and has a Social Security number, they may already have an investment account even though you did not have to do anything.
We built Endowe around one belief: redirecting the generosity (AKA $$$) of the people who love us or our children into gifts that have the potential to grow. So this news is pretty significant. Here is a quick summary of what changed, what didn’t change, and what I would tell my own family to pay attention to.
What Changed
Until last week, a parent had to opt in. Not surprisingly, most parents didn’t. In a July survey by the nonprofit Commonwealth, only 5% of eligible low-income and moderate-income parents with children 10 and under had opened an account. That might be why the IRS had to change course. Under temporary rules that took effect September 30, 2026, the Treasury opens the account for the child instead of the manual sign-up process. The IRS expects this to reach about 73 million children in 44 million families.
What didn’t Change
Although the account now exists for millions of children, a parent or guardian still needs to claim it. Until it is claimed, it sits with a Treasury trustee. As a parent or guardian, you claim it in the official Trump Accounts app by first verifying who you are, confirming your relationship to the child, and checking their details before accepting the terms.
The important thing to note is that before the account is claimed, the rules say the account can accept only certain government and charitable contributions. This means that parents, relatives and friends cannot make contributions to it.
Here is a brief recap of what goes into the account once claimed:
$1,000 from the government for children born from 2025 through 2028, once the account is claimed.
$250 from Michael and Susan Dell for 25 million eligible children. Invest America says families don’t need to apply.
Up to $5,000 a year from parents, family and friends combined: You share a link or QR code from the app, and your loved ones can either give from a bank account or debit card. (App support page)
On October 2, the head of the IRS told CNBC that as many as 25 million accounts could have money in them by mid-October. That is pretty cool!
In a previous blog, Trump Accounts, I explain what these accounts are, who’s eligible and also delved into pros and cons. But to summarize again for any new readers, it is a type of retirement account for a child. The money goes into low-cost funds that follow the broad U.S. stock market. It is designed to be left alone, and the rules generally lock it through the end of the year when your child turns 17. After that, it follows the rules of a traditional IRA.
What You Need to Pay Attention to
$5,000 is the annual contribution limit that is shared by everyone who loves this child. That includes, mom and dad, grandma and grandpa, aunties and uncles, neighbors, family friends, and even employers. So if you have a huge village of loved ones ready to pour into your child’s life, you’re going to have to be intentional about keeping track and perhaps getting ready to deploy excess monetary gifts into another investment account.
Where Endowe fits
It’s an investment gift registry. Instead of one more toy and cute gadget, your friends and family give an investment for a birthday or an upcoming milestone. A Trump Account doesn’t replace that and neither does Endowe replace a Trump Account, or a 529 plan. Each of these do a different job so you can definitely use more than one.
I am glad that 60 million children now have a great starting point. The giving is still up to us. So here are three things to do this week if you are a parent or guardian of a child who qualifies:
Go to TrumpAccounts.gov and download the official app from there.
Claim your child’s account.
Tell your family and friends about the account, so they can start gifting before the next birthday.
With lots of love,
Your godmother Ada
Disclaimer: As someone in finance as a regulated investment professional, I want to be clear: I’m not your financial adviser, and this post is education, not personalized investment, tax or legal advice. All investments carry risk including possible loss of principal, and past performance doesn’t guarantee future results. The rules for Trump Accounts are new and may change, so check TrumpAccounts.gov or talk to a professional who knows your full situation before making money moves. Endowe is not affiliated with the U.S. Treasury or the Trump Accounts program.
