Grow the Money Tree
Each ring of golden fruit is roughly $5,000 of value at age 18. Move the sliders and watch the tree — and the split between what was contributed vs. what compounding added.
drag to rotate
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projected balance
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money put in
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growth earned
What are "Trump Accounts"? The neutral facts
- Created in the 2025 US tax-and-spending law. Eligible babies (US citizens born 2025–2028 with parents' SSNs) receive a $1,000 federal seed deposit.
- Families and others can add up to $5,000 per year (that's ~$416/month — the slider's top). Employers may contribute up to $2,500 of that.
- Money is invested in a low-cost US stock index fund; the account is generally locked until age 18.
- Growth is tax-deferred; withdrawal rules and tax treatment resemble IRA-style accounts, with details set by Treasury regulations.
These accounts join an existing family of options: 529 plans (tax-free for education), custodial UTMA/UGMA accounts (flexible, taxed to the child), and custodial Roth IRAs (needs earned income; tax-free at retirement). The right pick depends on the goal — none is automatically "best."
Worked example: why age 0 beats age 25
| Plan | Total contributed | Value at 65 (7%/yr) |
|---|---|---|
| $1,000 at birth + $50/mo until 18, then nothing | $11,800 | ≈ $250,000 |
| Nothing until 25, then $200/mo for 40 years | $96,000 | ≈ $479,000 |
| Both combined | $107,800 | ≈ $729,000 |
The child plan contributes 8× less money yet ends up with more than half as much — because its dollars compound for 47–65 years. That's the whole lesson: time in the market is the most powerful variable, more than the contribution amount or even the return rate.
Caveats worth teaching kids too: 7% is a long-run average (the S&P 500's inflation-adjusted historical average) — real paths swing wildly; fees compound against you exactly the way returns compound for you; and locked accounts trade flexibility for discipline.