Michael Dell, philanthropist and founder of Dell Technologies (DELL), responded to critics who argue that allowing wealthy investors to donate shares of individual companies to Trump Accounts could have a dire impact. Under new rules that came into effect last week, charities can deposit individual shares into children’s accounts as a donation. Trump Accounts are tax-advantaged investment vehicles that can be used for education expenses, starting a business, or saving for retirement. They were authorized in last year’s One Big Beautiful Tax bill. Previously, money had to be invested in low-cost index funds. Read more: Trump accounts expand to stock donations. What are the benefits and risks? So far, SpaceX President Gwynne Shotwell is the only donor to announce a major stock contribution, pledging more than 2 million shares to benefit low-income children ages 11 to 17 living in low-income areas. “It’s kind of hard for me to believe that’s a bad thing, right?” Dell said Wednesday in an interview with Yahoo Finance. “That these kids will somehow be negatively influenced because they now have a piece of SpaceX, but they didn’t have it before, right? The alternative is that they didn’t, right?” He continued: “It seems unlikely that this is some kind of devious plot to somehow influence these 2 million children. If anything, they will be interested in space and capitalism and how capital markets work, in capitalization and investing, and it will spark an interest in them that will hopefully help them when they become adults.” Critics say the rule change could tie a child’s long-term financial security to a single company rather than the broader economy, and have raised ethical concerns that billionaire donors could use multimillion-dollar stock deposits in children’s portfolios to manipulate asset prices or secure tax write-offs. Dell and his wife, Susan, have pledged $6.25 billion to invest $250 in the Trump Accounts of 25 million children across the United States. More than 10 million children have already received the contribution, which represents 2.6 billion dollars invested. By Friday, all $6.25 billion is expected to have been invested. “I think there will be several additional philanthropists joining us,” Dell said. “We now have many employers joining the fund here and either matching the government contribution or stepping up much further and contributing to the accounts of children working within their businesses or even children in the communities where their businesses operate.” Starting October 1, the Treasury Department changed Trump Accounts from a voluntary investment in index funds to automatic enrollment to ensure broader access to children’s savings accounts. Nearly 70 million children under age 18 with a valid Social Security number now have a Trump Account established in their name. It is now up to parents and guardians to claim their child’s account. Parents can claim an account (and the initial $1,000 contribution for eligible children) by downloading the official Trump Accounts app, verifying their identity and relationship to the child, reviewing the child’s information, and agreeing to the account terms. Any child born during President Trump’s second term is eligible to receive the $1,000 seed money, although that payment will not be made to automatically enrolled accounts until parents or guardians claim them. Parents can contribute up to $5,000 a year. Employers can also contribute and allow workers to fund their accounts. Dell said the tangible ownership of these accounts will serve as a powerful tool for financial education nationwide, sparking the interest of children and their parents to learn more about investing. “Financial education is essential and I believe that [Trump Accounts] will spark that interest,” Dell said. “There’s really no reason to learn about capitalism or capital if you don’t have any, right? We’re starting to see that interest: ‘Hey, I have a small part of all these companies, what’s that all about? How does that work?'” “Start [kids] on the path of saving, investing, and learning about compounding,” she said. “Hopefully, we’re not just giving them $250, but we’re giving them the beginning of an education and learning.” Jennifer Schonberger is a veteran financial journalist who covers markets, economics, and investing. At Yahoo Finance, she covers the Federal Reserve, Congress, the White House, the Treasury, the SEC, the economy, cryptocurrencies, and the intersection of Washington politics and finance. Follow her on X @Jenniferisms and on Instagram Subscribe to the Mind Your Money Newsletter Click here for the latest personal finance news to help you invest, pay off debt, buy a home, retire, and more Read the latest financial and business news from Yahoo Finance.
