Projected Account at Age 18
$34,891
Real purchasing power: ~$22,410
Total Out-of-Pocket
$15,400
Seed + Family + Gifts
Compound Interest Earned
+$19,491
126% gain over principal
Total Value (Compounded)
Principal Deposited
Cash in Jar (0% return)
Hover or tap chart to inspect specific age
Inspect Age:
Age 18 $34,891
Age Year Annual Gifts & Deposits Cumulative Principal Annual Growth Ending Balance Real (Inflation-Adj)
Plan ready. Adjust inputs to observe compounding shifts.

What is a Childhood Seed Account?

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.

The Mathematics of an 18-Year Horizon

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.

Custodial Account Vehicles

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.

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