The great thing about free money is that it’s free.

As seen in The Oakland Press

June 21st, 2026

The great thing about free

money is that it’s free.

by Ken Morris

My wife and I have been blessed with another grandchild. Our first since the One Big, Beautiful Bill Act was signed into law in July 2025. Often referred to as the BBB, it’s important because babies born between January 1, 2025 and December 31, 2028 are eligible to receive a one-time deposit of $1,000.

The program is funded thanks to contributions by numerous well-known individuals, including members of the Dell family of Dell Computers and singer/songwriter Nicki Minaj. Additionally, employers are permitted and many have agreed to match additional deposits made by their employees. A total of $5,000 per child can be contributed into the account annually. Of that total, up to $2,500 can be contributed by the parents’ employer.

The program is called Trump Accounts, and even though it’s funded by generous donations, it’s administered by the Treasury Department.

When advising clients about retirement savings, I’ve always encouraged them to never turn down free money. That means they should always participate in their employer’s retirement program and opt for the greatest employer match available. It’s free money.

Trump Accounts are also free money. As such, I recommend that any parents with eligible newborns take full advantage. I’m aware that we’re in an extremely polarizing political environment. But, regardless of your political feelings, I see no reason not to apply for the initial $1,000. It’s not just free, it’s a great start for your child’s education. Afterward, you and your employer may or may not continue to contribute. Money from these accounts is eligible for withdrawal after the recipient reaches age 18 and is taxed as ordinary income.

I am also a strong proponent of the 529 educational programs, another great tool for college planning. I certainly anticipate that my son and daughter-in-law will establish one for their newborn. As grandparents we will continue to contribute.

Over the years, 529s have evolved and most programs now include trade schools as well as colleges. The way they’ve expanded, you can look at them as lifelong learning and retraining accounts, viable well beyond the traditional age of a college student.

What’s more, for any funds not used for educational purposes, there are now provisions that allow that money to be rolled into a Roth IRA.

529 programs generally offer a diverse menu of investments. You can choose from an ultra-conservative, interest-bearing account to an aggressive stock fund and anything in-between. It’s important that you research thoroughly and select wisely, according to your means and risk tolerance.

Another great benefit of a 529 is that money withdrawn for eligible educational expenses is not taxed as ordinary income. And that includes all the interest you’ve been accumulating. All monies withdrawn for education are not taxable.

The more we do to help jump start and sustain our children’s education, the better for all. I will encourage my son to open both accounts. As grandparents, we continue to favor the traditional 529 programs. But I suspect, just as the 529 provisions have evolved and improved, Trump accounts will also be modified and tweaked over the years.

From a financial perspective, parents of newborns now have two important programs to benefit their newborn. One provides free money and the other is funded by money given from the heart of grandparents and other family members.