💡 $1000 at Birth? The New Federal Program Explained

Hey Wealthy Families!

We have exciting updates to share about the new federal investment accounts for babies born from 2025 to 2028.

This is EXACTLY what we teach here at Wealthy Kids Academy! Not only does this wealth-building opportunity prove that we’re on the right track, but it truly opens a world of possibilities for our kids.

If you’ve heard the buzz about this $1,000 “baby bonus,” here’s what’s happening — and what it means for your family:

👶 What is it?

Thanks to the new One Big Beautiful Bill, every U.S. baby born between Jan 1, 2025 and Dec 31, 2028 will automatically receive $1,000 from the government, invested in an S&P 500 fund inside a custodial account (officially called a Trump Account or Invest America Account).

✅ New updates you should know:

• Capped fees: Annual account fees will be capped at just 0.10% — keeping costs super low!

• Employer contributions:
  Employers can now contribute up to $2,500/year on top of your own contributions (which can be up to $5,000/year tax-free).
  This applies to the parent’s employer — just like a 401(k) or HSA match — as an optional employee benefit.
  Employers aren’t required to offer this, but if they do, contributions can be pre-tax and may qualify for corporate tax benefits.

• Automatic setup: If you don’t open an account, the Treasury will automatically create one at tax time so your child won’t miss out.

💰 How big could this get?

Even small, regular contributions (say, $20/week) plus an employer match could grow this account to $100,000 by your child’s 21st birthday — or even more if left invested longer.

Think about it: at 18, your kid could already have a six-figure head start. What could they do with that?

My top 3 ideas:

• 💼 Buy an established business — creating immediate income

• 🚀 Start their own business — skip years of saving and get right to work in a passion area

• 🏡 Invest in real estate — why pay rent when they could own and build equity early?

The possibilities are truly endless! 🎉

⏳ When can they access the money?

• Age 18: Withdraw up to 50% for college, a first home, or a business

• Age 25: Full access (with tax perks!)

• Age 30: Withdrawals allowed for any purpose

🎯 Wealthy Kids Academy Tip:
This is a perfect opportunity to start teaching your kids about investing early and showing them how money can grow over time.

We’ll keep you updated on how to open these accounts when financial institutions are ready — expected later this year — and share tips on maximizing contributions and matches.

Thanks for being part of this community. Let’s keep raising kids who are prepared, confident, and financially wise!

— Amanda
Founder, Wealthy Kids Academy 💛

📩 P.S. Know someone expecting a baby in 2025? Forward this email their way — it’s the kind of head start every family should know about!