Parents with children under age 18 can now begin registering for a new type of tax-advantaged savings account known as a Trump account when filing their 2025 tax returns. Register for the account, experts say, but don’t wait for contributions to begin in July if you want to save for your children’s futures.
That’s because Trump accounts aren’t the only way to save for a child’s future, especially for major expenses like college, says Alex Canellopoulos, a certified financial planner and director of investments at Vista Capital Partners.
Take the “free money,” Canellopoulos says: For children born between 2025 and 2028, the Trump accounts will include a $1,000 federal deposit for parents who opt in, and children born before 2025 may be eligible for a $250 grant funded by a private $6.25 billion pledge from billionaires Michael and Susan Dell.
But if you expect to pay for your child’s education in the future, Canellopoulos says to also start saving now with a 529 college savings plan.
“The earlier you can save, the better,” Canellopoulos says. “We know how expensive college is already. If you believe your kid will go to college in the future, I wouldn’t count on these expenses going down.”
