Sometimes a name can keep us from seeing an opportunity clearly.
The federal government has launched a new savings program for children called Trump Accounts. The name alone will generate strong reactions. For some people, it will create immediate enthusiasm. For others, it may cause them to dismiss the program before learning anything more about it.
We have seen this before.
For years, the term “Obamacare” shaped how many Americans viewed the Affordable Care Act. People often reacted to the name, and the person associated with it, before considering what the law actually did or how it might affect their families.
Trump Accounts will likely face the same challenge.
But here is the truth. Regardless of how we feel about President Donald Trump, his administration or any political party, we should not allow those feelings to cost our children and grandchildren a financial opportunity.
Trump Accounts can be established for eligible children with valid Social Security numbers before they turn 18. Children born from January 1, 2025, through December 31, 2028, may also qualify for a one-time $1,000 contribution from the U.S. Treasury.
The Social Security Administration is working to make enrollment easier by incorporating information about the accounts into the process hospitals already use to help parents obtain Social Security numbers for newborns.
For many families, building long-term savings is difficult. The cost of housing, groceries, transportation, child care and health care can consume nearly every dollar coming into a household. Parents may understand the importance of investing for the future but feel as though they never have enough money to begin.
A program like this creates a starting point.
Of course, $1,000 by itself will not guarantee a child’s financial future. No government program can replace responsible parenting, consistent saving, financial education and wise decision-making. But time is one of the most powerful tools in building wealth. Money invested early has years to grow, and even modest contributions made consistently can become meaningful over time.
The greatest value of these accounts may not be the initial government contribution. It may be the opportunity to teach a child that wealth is usually built slowly, through patience, discipline and good choices.
Imagine grandparents contributing on birthdays instead of buying another toy that will soon be forgotten. Imagine parents adding small amounts whenever they are able. Imagine a young person reaching adulthood with not only an investment account, but also an understanding of how saving and compound growth work.
That could change the direction of a life.
We do not have to support every politician who promotes a program in order to recognize when the program may benefit our families. We can disagree about politics and still make practical decisions. In fact, responsible leadership requires us to look beyond personalities and examine the opportunity itself.
Like it or not, Trump Accounts are here.
The question is not whether we like the name. The question is whether we are willing to put politics aside long enough to give the next generation a stronger financial foundation.
Our children should not lose an opportunity because the adults in their lives could not see past a political label.
David Specht is president of Specht Newspapers, Inc., publisher of the Minden Press-Herald, Bossier Press-Tribune, and BIZ Magazine.