Will the new savings scheme for American children succeed?
The US government has launched 'Trump Accounts,' a new savings scheme for children under 18 that provides a $1,000 kickstart for babies born between 2025 and 2028. While the accounts offer tax-free growth for long-term investments, critics argue the program is overly complex and may disadvantage lower-income families.
Why it matters
This policy represents a significant shift in federal savings incentives, potentially impacting long-term wealth accumulation for millions of American children.
Share Save Add as preferred on Google Michael Race Business reporter, New York Getty Images The launch of Trump Accounts, the new savings scheme aimed at encouraging investing among American children, was marked with an historic ringing of the Wall Street opening bell in the Oval Office this week.
But not everyone is convinced the project will prove a success in giving new generations a stake in the so-called American dream, with sceptics suggesting that it will not live up to the hype.
The savings accounts are now available to all US children under the age of 18, with babies born between 2025 and 2028 qualifying for a $1,000 contribution to kickstart savings.
The move comes as the cost of living remains a major issue ahead of November's mid-term elections, but tax experts told the BBC families on lower incomes could lose out and that the scheme is too complicated.
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