Best Investing Accounts for Kids (New Trump Accounts?)

The Money Guy Show breaks down four investment accounts for kids—Trump accounts, 529s, UGMA/UTMA custodial accounts, and custodial Roth IRAs—and then walks through the math of compounding to show why starting early matters so much. The hosts also answer audience questions about staying motivated in the "boring middle" of wealth building, financing large purchases, and navigating student loan forgiveness. Throughout, they emphasize that personal finance is personal and that the best account depends on what you want the money to do.

The Four Accounts: Who They're For and How They Work

The episode compares four common vehicles for saving for a child's future. The Trump account is brand new and gets the most attention because the government seeds it with $1,000 for children born in 2025 or 2026. Parents and grandparents can contribute up to $5,000 per year. The account is owned by the child, who gains access at 18. The hosts see the free money as the main draw, but note that investment options are limited and the account is so new that some details remain unclear.