Trump Accounts and Youth Financial Literacy

Trump Accounts are tax-advantaged investment accounts for U.S. citizens under the age of 18. Parents and guardians can enroll their child by making an election when they file their taxes. Up to $5,000 can be contributed per year, and at age 18, the young person can withdraw the funds for things like education or a home, with the tax advantages of a traditional IRA. A pilot program will provide $1,000 into the Trump Account for every American child born between January 1, 2025, and December 31, 2028. At the February 6, 2026, meeting of the Financial Literacy and Education Commission (FLEC; see recording here), Secretary Bessent noted that with Trump Accounts, every American child can have a stake in the world’s largest economy. By tracking the performance of the Trump Account over time, young people can advance financial literacy through real-world investing experience. 
 

• To learn more about Trump Accounts, visit https://trumpaccounts.gov/
   
• The FLEC is updating its U.S. National Strategy for Financial Literacy this year, and the Treasury Department recently published a request for information to inform this effort. Please provide your feedback on how the strategy should be revised to ensure that financial literacy programs and initiatives continue to be relevant, effective, and responsive.
   
• Young people can try a free investment simulator here: SMG InvestQuest: https://smgiq.org/