He Fears Spoiling Their Child With 'Hundreds Of Thousands' In A 'Trump Account' At 18. They Plan To Contribute $5K A Year
He Fears Spoiling Their Child With 'Hundreds Of Thousands' In A 'Trump Account' At 18. They Plan To Contribute $5K A Year
Adrian VolenikSun, February 22, 2026 at 1:31 AM UTC
0
A soon-to-be father says he wants to do everything possible to set his son up for success. But there's one thing that worries him: What happens if that success turns into entitlement?
He and his wife plan to open a “Trump Account” and contribute $5,000 a year. The government-backed investment account for children born between 2025 and 2028 includes a $1,000 government contribution at birth, with the option for parents to add more each year.
By the time their son turns 18, the account could hold “hundreds of thousands of dollars,” the father wrote in a letter to “The Ramsey Show” recently.
Don't Miss:
This AI Helps Fortune 1000 Brands Avoid Costly Ad Mistakes — See Why Investors Are Paying Attention
Put professional stock research to work in a single ETF — explore Motley Fool Asset Management's factor-based funds.
His concern is simple: How do you make sure an 18-year-old doesn't “squander the money away on ridiculous material purchases every 18-year-old dreams about?”
Raising A Responsible Adult Vs. Handing Over Control
Hosts Jade Warshaw and George Kamel said the issue has two sides.
The first is how you raise the child. “What you're teaching him about money in the next 18 years is really huge,” Warshaw said.
If parents model thoughtful spending and avoid buying things to impress others, kids usually absorb those values. “If you've created a lifestyle where we don't squander things in our home and we're very thoughtful about our purchases, your child is going to pick up on that,” she said.
Trending: Designed for investors with strong market convictions, REX Shares builds ETFs for income, leverage, and tactical positioning — explore the lineup.
The second issue is strategy. Do you really want your child to gain full control of a large sum of money at 18?
Kamel said he looked into the accounts and found “there's not a whole lot of advantages outside of the free $1,000” available for children born between 2025 and 2028. He said he would take the free $1,000, but wouldn't contribute much more.
“At 18, they get control if it's a Trump account,” he said. “And they don't need hundreds of thousands of dollars at age 18,” Warshaw added.
Advertisement
“Their prefrontal cortex isn't baked yet.” Kamel continued, “These are the same kids taking out $250,000 for degrees that they don't need. So let's not give them that control.”
Instead, both hosts said they prefer more established options. They use 529 plans for education and keep additional investments in a brokerage account in their own names. That way, they can gift money when they believe their children are ready.
See Also: You Saved for Retirement — But Do You Know What You'll Keep After Taxes?
Whether it's paying for a wedding, helping with a down payment or buying a first car, keeping the account in the parent's name allows flexibility. “I don't want you ending up with $100,000 or $500,000 at age 18,” Warshaw said.
For families earning $100,000 or more a year and thinking seriously about long-term wealth planning, working with a professional can help avoid costly missteps. Domain Money offers personalized financial planning designed for households ready to take their financial strategy to the next level. The service focuses on helping clients make smarter, more confident decisions about investing, taxes and long-term goals.
In the end, Kamel said he's not against the accounts entirely. He just doesn't think they're “all it's cracked up to be.”
Read Next: Instead of buying someone else's ETF, build an index around your own thesis with Public's AI tools. Get started and see if you qualify for the 1% match.
Image: Shutterstock
"ACTIVE INVESTORS' SECRET WEAPON" Supercharge Your Stock Market Game with the #1 "news & everything else" trading tool: Benzinga Pro - Click here to start Your 14-Day Trial Now!
Get the latest stock analysis from Benzinga:
APPLE (AAPL): Free Stock Analysis Report
TESLA (TSLA): Free Stock Analysis Report
This article He Fears Spoiling Their Child With 'Hundreds Of Thousands' In A 'Trump Account' At 18. They Plan To Contribute $5K A Year originally appeared on Benzinga.com
© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Source: “AOL Money”
