One Super Bowl Ad Speaks Directly to Parents About 'Free Money.' What Are Trump Accounts and Should You Get One?
Among the much-anticipated ads set to air during the Super Bowl on Sunday—for everything from Dunkin’ and Budweiser to Nerds and Expedia—at least one will be speaking directly to parents.
“Dear America,” says a little girl in the first frame, followed by a series of other kids who continue, in quick succession, with, “If I start investing when I’m 16,” “9,” “7,” “it could change my future.” More kids offer a promise: “This year, every American child gets an investment account, and millions will be pre-funded. That’s free money.”
The spot, from nonprofit Invest America (founded by Republican strategist Matt Lira) is pushing a new kind of investment plan for parents—the 530A, or so-called Trump account—after being established with bipartisan support as part of 2025’s tax bill. But how does it work? Here’s all you need to know.
What Are Trump Accounts?
“They’re essentially tax-advantage investment accounts for kids,” explains Lindsey Stanberry, founder of the women’s personal finance newsletter the Purse and newly partnered advisor with Babylist Money, a vertical launched Friday that helps parents understand child-specific savings options. “I think that the best way to think about them in terms of other financial products out there is they work a lot like an individual retirement account.”
Any parent with a child under 18 can sign up for one—which you can do starting on July 5th—and those with a baby born during Trump’s second term will receive a $1,000 deposit from the government. From there, families have the freedom to contribute up to $5,000 per year.
The contribution limit, and the fact that it’s tax-deferred, says Stanberry, makes these like similar to IRAs. But there are also rules on how and when the money can be spent. “With a 530A account, your child can’t access the money until they turn 18, and even then, it’s only for certain expenses, like buying a home or paying for education or a business,” she says. Or they can just keep it invested.
“The big goal is that they wouldn’t really touch this money until they reach retirement age,” she adds. “And the idea is that it has decades to grow and compound, so they wouldn’t have to save as much in the short term, because they can save a little over a long term.”
An additional 25 million kids who are 10 or younger and living in low-income areas will also be eligible to receive money in their accounts—lump sums of $250—because of a $6.25 billion donation from Michael and Susan Dell. But at this point it’s still unclear which kids, exactly, would qualify, says Stanberry.
What If You Can’t Afford to Add Anything More to the $1,000?
Will that money still be helpful? “Of course,” says Stanberry. “I mean, $1,000 is a lot of money. Does it solve all the problems? No. But I don’t think that we should underestimate how much $1,000 is, and that if you leave it in this investment account and allow it to just compound, with a conservative 6% [growth rate], by 18, they’ll have $2,000 which is not nothing.” If they leave it longer, it will continue to grow.
“I think that sometimes in this conversation, people get hung up on the idea that $1,000 — especially $1,000 you can’t use right now — doesn’t feel very exciting. But if you saw $1,000 laying on the street, you would be thrilled.”
Still, as Jean Chatzky, personal finance expert and founder and CEO of HerMoney Media, explains in a recent TikTok, “Where these get powerful is if additional money is added to the accounts.”
How Are They Different From 529 Accounts?
While they’re similar in a lot of ways, as both can be used for education expenses. But a 530A, the goal is to ideally use it for retirement. You are also taxed on your earnings when you take out the money.
“With a 529, you don’t pay taxes when you take out money to pay for qualified educational expenses,” says Stanberry. You are also able to put a much higher amount—upwards of $200,000 depending on the state—into a 529 each year. “So those are like really magical accounts,” allowing you to save much more. Plus, she says, “You can front load them and never think about them again.”
Which Is Better, a 529 or a 530A?
The benefit of a 529 over a Trump account is that the money comes out tax-free, says Chatzky.
“If you’re not sure that your child is going to want to go to college, that’s definitely something to consider, because in that case you’re going to pay a 10% penalty on your proceeds,” she says. “Although you do have the ability to eventually roll up to $35,000 into a Roth IRA.”
Deciding between the two, Chatzky recommends the 529 if you’re pretty sure that college is in your kid’s future. “If not,” she says, “this is a very nice option.”
As is double dipping, adds Stanberry “If you have the means, there’s no reason that you can’t have a 529, and a Trump account,” she says. “I don’t think that there’s a reason not to try to do both.”