Ramsey Solutions personality George Kamel explains the pros and cons of Trump Accounts to Fox News Digital and when is the best time to invest in your children. When the federal government began depositing an initial $1,000 contribution into the newly launched Trump Accounts for eligible children in July, Ramsey Solutions personal finance and personality expert George Kamel didn’t hesitate to claim the funds for his own young son. Although Kamel gladly accepted “a little money” from Uncle Sam, he issued a cautious warning to parents across America about the program’s tax fine print and the costly mistake well-intentioned families could make. has been given so much,'” Kamel told Fox News Digital. “If you can understand the power of compound growth, then this Trump Account was worth it just to get your mind thinking about it,” he continued. “But the truth is, the tax benefits are not great in this case.” WHY RAMSEY FINANCIAL EXPERT SAYS THERE IS NO MAGIC AGE TO CLAIM SOCIAL SECURITY The initiative, which debuted as part of the launch of Trump Accounts in 2026, is a provision of the new tax legislation that will provide $1,000 to each eligible newborn U.S. citizen whose parents enroll the child in the program. No contributions are required, but parents can deposit up to $5,000 per year, which will be invested in a qualified U.S. stock index fund. President Donald Trump rings the opening bell of the New York Stock Exchange before the launch of Trump Investment Accounts in the Oval Office of the White House in Washington, DC, July 6, 2026. (Getty Images) During a public Cabinet meeting on July 31, President Donald Trump said that more than 7 million Trump accounts had been opened since the program’s launch date by the time my son is 65, without adding anything to it,” Kamel said before mentioning other ways to invest in children’s future. “Save the 529 plan for education. That has much better tax advantages. You use after-tax income, you withdraw it tax-free, that’s the best measure for education expenses,” he explained. “When it comes to other things, like a custodial Roth IRA is great, but you need earned income. So the real power of the Trump Account is that you don’t need earned income.” President Donald Trump provides an update on ‘Trump Accounts’ noting that more than 7 million accounts have been opened since its launch on July 4. At age 18, without any additional contributions, the account is estimated to be worth about $5,800. At age 55, it could reach approximately $200,000. Kamel also said it could grow to around $5 million by age 65. However, Kamel’s main warning was aimed at parents who rush to invest for their children while neglecting their own debt, emergency funds or retirement savings. “I love that we’re bringing this conversation to the forefront with these Trump Accounts…But the sad truth is that most Americans are not investing for themselves, much less have the ability to invest for their children,” he said. “We tell people, hey, debt free, don’t owe money to other people, have an emergency fund so you have the margin to build wealth for yourself. And once you’re investing 15% of your own income into your own retirement, then and only then should you think about investing for your kids.” The problem is that a lot of children have to support their elderly parents who didn’t plan for their own retirement, so now they have to fund their retirement while trying to support their own life and their own children, which puts a real burden on the younger generations,” Kamel continued. “And I don’t want to do that to my children.” “So if you can achieve this early, this mentality, that compound growth is the key… I hope you have the ability to leave that legacy that your children came to, ‘Wow, I can’t believe the head start my parents gave me at set me up this way.'” READ MORE FROM FOX BUSINESS Fox Business’ Alexandra Koch contributed to this report.
