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Americans have a new way to invest in their kids’ futures: Trump Accounts launched over the weekend. Congress approved them last year as part of the One Big Beautiful Bill Act, Republicans’ tax and spending law. They function similarly to retirement accounts, but instead of being for adults preparing for their senior years, they’re for assisting kids with the start of their adult lives.

The money in these accounts will be invested in an index fund that broadly tracks the stock market. Any American citizen under age 18 can have an account, and once they turn 18, they can access that money for things like education or buying a house. (The money can also be used for other purchases, but that comes with a tax penalty.)

The accounts function as a kind of digital “donation bucket” that many people can contribute to — kids’ families, but also philanthropists, their parents’ employers, and even the government. Contributions from family and other adults in the children’s lives are made in after-tax dollars; contributions from others, such as employers or the government, are pre-tax. The child will only pay tax on the investment’s growth once they withdraw the funding.

But there are already plenty of other options for parents to invest in, from education saving plans to their own retirement accounts. So should you sign up your family for Trump accounts? Here are four things to consider.

Your child could get free money from the federal government 

If you have a child born between 2025 and the end of 2028, financial advisors say signing up for a Trump Account should be a simple decision for one reason: The child’s account will automatically get a $1,000 seed contribution from the federal government.

Financial planner Michael Reynolds with Indiana’s Elevation Financial did the math for Morning Edition and said that, even without any additional investments, that $1,000 would become almost $4,000 by the time a kid turns 18. (That’s assuming an 8% rate of return and doesn’t count the income tax that has to be paid on the growth and initial federal contribution.)