3 Alternatives to a Trump Account That Will Yield More Savings for Your Child

Chris Adam

Sun, February 22, 2026 at 9:43 PM GMT+9 2 min read

With the recent news about Trump Accounts, some American families are wondering if this is the best option to grow savings for their kids. The accounts, a provision of President Donald Trump’s tax legislation, are designed to give $1,000 to every newborn whose parents open them.

The money in Trump Accounts is invested in the stock market by private firms, and the child can access the money when they turn 18. That means the money could compound for decades to come and potentially reach six figures by retirement.

However, some finance experts told GOBankingRates there are other options for parents to consider.

Roth IRA

“I personally think the ‘Trump Account’ concept gets more attention than it deserves, and here’s why that bothers me: there are already battle-tested tools that can do more for your child’s financial future, right now, with better tax advantages,” said Andrew Lokenauth, founder of the blog Fluent in Finance.

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He pointed to the power of a Roth IRA for kids with earned income since that money compounds tax-free for potentially 50+ years. Lokenauth said “the math is almost unfair in the best possible way.”

529 College Savings Plan

“If the funds are specifically earmarked for college or higher education, these provide a great opportunity for investing funds,” said Brandon Gregg, certified financial planner, advisor with BBK Wealth Management. “Depending on the timeframe of when the money is needed, you can invest as aggressively or conservatively as you need to. These accounts also give tax benefits for contributions and withdrawals.”

Custodial Brokerage Accounts

Melanie Musson, a finance expert with Quote.com, said these accounts may not offer a tax advantage, but they offer flexibility to withdraw when you want. You won’t face penalties for early withdrawal or for using the funds for an unauthorized purpose, she added.

“Some parents also choose to invest within their own brokerage account and designate those funds for future use on behalf of the child, which can maintain parental control longer,” said Taylor Kovar, CFP, CEO of 11 Financial. “The most meaningful factor in many cases tends to be consistency. Regular contributions invested over time often have a greater impact than the specific account label.”

Bottom Line

Overall, according to Gregg, it’s hard to say what would yield more or less in certain accounts as it is very much dependent on how the account is invested.

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“You should look at objectives, time frame and risk tolerance before making any specific investment,” Gregg added. “Whatever account is used, make sure it fits your objectives and long-term goals.”

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This article originally appeared on GOBankingRates.com: 3 Alternatives to a Trump Account That Will Yield More Savings for Your Child

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