Last year, Congress established 530A tax-advantaged investment accounts for children under the age of 18. These accounts are now open and eligible children born between January 1, 2025 and December 31, 2028 receive a $1000 contribution from the federal government. This August, philanthropists Michael and Susan Dell gave $6.25 billion to supercharge these so-called Trump accounts, $250 goes into the accounts of the first 25 million children who have an account, are 10 and under and live in qualifying zip codes. Two hundred and fifty dollars was deposited into our children’s 530A Trump accounts.
However, as of July 2026, less than 10% of children eligible to open an account actually had an account. Too many of those who are economically worst off have not opened these 530a accounts. Research shows that families with higher incomes, older people, men and white people are more likely to be aware of this opportunity compared to families with lower incomes who are younger, women and Black and Latino. Given the historical, persistent racial and growing economic wealth gap, opportunities to build wealth should not be overlooked.
Regardless of how we feel about Trump, there are benefits to opening a federal investment account. For many of us, our instincts to most things Trump are eye rolls, deep sighs and gag reflexes. Like us, it might feel blasphemy to open this account. But, as researchers who study child development and stratification, we know that context matters and “it depends” is a legitimate scientific answer. While important questions remain about these accounts, it is possible to open a Trump account without adding any personal contributions. Thus, it makes sense to open one, so as not to leave money on the table.
In a world where the wealthiest among us are tied to investment accounts and investment in the stock market is highly stratified, expanding access is socially sustainable. Yes, a majority of Americans own some stock (62%), but stock ownership varies substantially by income, race and ethnicity. Lower-income adults are considerably less likely to own stocks (28%) compared to other income groups. And, while 70% of white adults own stock, only 53% of Black adults and 38% of Latino adults own stock.
Similar stark disparities also play out with 529 plans, one of the best known college savings plans that up to 54% of parents don’t even know exist. Most children do not have a 529 plan and family contribution varies by race and income with wealthy white families being the most invested. California’s ScholarShare 529 tracks its account owners by race and ethnicity. Black account owners make up 1% of their account owners, Latinos 8%.
As social and developmental scientists, we consider how factors such as race, ethnicity, and discrimination influence the development and economic circumstance of minoritized children and their families within US society. We understand that so many of these wealth building accounts were not created with Black and Latino families, women, or low-income people in mind, yet these populations have much to gain if these accounts remain stable and grow wealth.
To be sure, the outcome of these accounts is unpredictable. Beyond his actions which make him a social pariah to so many, such as the racism, the sexual abuse and his general animosity to anyone who doesn’t prefer and obey him, Trump’s uniquely long track record of failed ventures might be a deterrent. But, if Trump’s detractors are less likely to open an account than those who vote for and support him, then a pathway is set for a President to effectively grow the wealth of mainly his supporters. And, according to United States constitutional law, Trump will not be in office at the end of business January 20th, 2029. Perhaps instead of putting their names on buildings, landmarks, monuments, etc. the next President can change the name of these accounts to a more neutral one.
Until then, in these times of such extreme wealth inequity, social instability and racialization, we need to be willing to take what works for us, regardless of our feelings towards any given political actor. We may think Trump is abhorrent, that doesn’t mean we need to deny ourselves a broadly accessible public wealth-building program. It may mean we need to double down on any such crumb.
Megan Thiele Strong is a Sociology professor at San José State University and a Public Voices Fellow at the The OpEd Project and a member of the Scholars Strategy Network.
Sabrina Mendez-Escobar is a mom, Ambassador with The OpEd Project, researcher with an interest in empowering Latino families, and Child Development professor at City Colleges of Chicago.
