Exploring Children's Financial Options

“Trump Accounts” are set to roll out, with contributions beginning around July 4, 2026. Children under age 18 will be eligible to open an account, with total contributions capped at $5,000 per year from any source. In addition, children born between January 1, 2025 and December 31, 2028 may qualify for a one-time $1,000 contribution from the Treasury Department, provided the appropriate election is filed. These accounts are designed to support long-term, tax-advantaged savings for families.

Whether the specifics evolve or not, they highlight something more important than any one product—how we prepare the next generation for both wealth and responsibility.

For many DELCO families, the bigger opportunity comes not just from investing but from coordinating the investment accounts while thinking about risk, taxes and estate planning.

Coordination Done R.I.T.E (Risk.Investments.Tax.Estate)

Risk
The biggest risk may not be market volatility—it’s failing to educate our children on how to build, manage, and respect wealth. With a strong foundation, financial education can compound to create amazing results.

Investments
Time is the greatest asset. A simple example: $5,000 invested at age 1 versus age 18 can be the difference between a meaningful head start and playing catch-up for decades. Compounding doesn’t just reward returns, it rewards time.

$5,000 invested at birth at 8% grows to about $1.27 million by age 72.

$5,000 invested at age 18 at 8% grows to roughly $320,000 by age 72.

18 years can dramatically impact outcomes!

Tax
State sponsored 529 plans (savings vehicles for qualified education expenses, like college tuition) offer tax-free growth for education. Roth IRAs (an individual retirement account that allows your money to grow tax-free), once kids have earned income, provide tax-free growth for life. Trump Accounts introduce another layer of tax-deferred growth. When used together, these accounts help families keep more of what they build.

Estate
This is bigger than money. It’s about legacy: values, education, and preparedness. These accounts become tools not just for transfer, but for teaching stewardship, responsibility, and long-term thinking.

How They Fit Together

529 Plans: Best for education, tax-free if used properly
Trump Accounts: Early investing, broader flexibility
Roth IRAs: The long-term powerhouse once kids begin working

The Bigger Picture

What matters most isn’t the account, it’s the habit.
Start early. Fund consistently. Talk about it often.
Let your children see what it means to build something over time.

These decisions should never be made in isolation. Member's Wealth help families align Risk, Investments, Tax, and Estate into one coordinated plan, so wealth isn’t just transferred, it’s understood. This is Wealth Done R.I.T.E.- helping families prepare the next generation not just to receive wealth, but to steward it with purpose.

Quick breakdown:

529 Plans

Tax-free growth when used for education
State tax benefits (including PA)
High contribution limits
Limited flexibility if not used for education

Trump Accounts (New)

Designed to jumpstart long-term investing for children
After-tax contributions, tax-deferred growth
Broader use than education (details evolving)
Likely lower contribution limits than 529s

Roth IRAs (for working teens)

Funded with earned income
Tax-free growth and withdrawals
Extremely flexible (can double as emergency or first home funds)
Contribution limited to earned income

Simple Comparison

Account | Best Use | Tax Benefit | Flexibility

Investment advisory services are offered through Members’ Wealth, LLC., a Registered Investment Advisory Firm.

Registration with the SEC does not imply a certain level of skill or training. We are an independent advisory firm helping individuals achieve their financial needs and goals.

This article is limited to general information pertaining to Members’ Wealth investment advisory services.

memberswealthllc.com