| Age | Year | Annual Gifts & Deposits | Cumulative Principal | Annual Growth | Ending Balance | Real (Inflation-Adj) |
|---|
| Age | Year | Annual Gifts & Deposits | Cumulative Principal | Annual Growth | Ending Balance | Real (Inflation-Adj) |
|---|
Proposals like "Trump Accounts", federal Baby Bonds, or private Custodial Trusts give newborns a starting seed deposit ($1,000) allowed to compound in broad-market index funds until age 18. Friends, grandparents, and godparents can contribute small gifts for birthdays instead of disposable toys.
Because children do not need early liquidity, their investment horizon is naturally 18+ years—ideal for aggressive equity compounding. At historical 8% average market returns, money roughly doubles every 9 years, allowing regular modest family contributions ($50/mo) to build a transformative nest egg.
In practice, families implement these tools using UTMA/UGMA custodial accounts, 529 college/trade plans (which can now roll over up to $35k into a Roth IRA under SECURE 2.0), or Custodial Roth IRAs once the teen has earned income.