The Real American Dream Is Ownership: What Every Parent Needs to Know
Something happened in America that most people are not paying attention to. On July 4, 2025, a bill was signed into law that fundamentally changes how the next generation builds wealth. It is called the Invest America Act and it creates investment accounts for children with money from the federal government.
This is not a loan. This is not a benefit you have to qualify for based on income. Every child born in America between 2025 and 2028 will receive $1,000 from the U.S. Treasury to start an investment account. Children 10 and under who were born before 2025 can receive $250 thanks to a $6.25 billion contribution from Michael and Susan Dell. That money gets invested in the S&P 500. It grows. It compounds. And at 18, that child has capital to use for college, a home, a business or to keep investing for retirement.
I wish this existed when I was younger.
The Invest America Accounts are federally backed investment accounts for children. Any child under 18 with a Social Security number can have an account. Parents or guardians open the account starting July 4, 2026. The account is in the child's name. The parent controls it until the child turns 18.
Children born between January 1, 2025 and December 31, 2028 automatically receive $1,000 from the U.S. Treasury once the account is activated. Children 10 and under who were born before January 1, 2025 can receive $250 from the Dell Foundation if they live in ZIP codes with median incomes below $150,000.
The money is invested exclusively in index funds that track the S&P 500 or comparable broad based U.S. equity indices. Anyone can contribute to the account up to $5,000 per child per year. Parents, grandparents, aunts, uncles, friends. Employers can contribute up to $2,500 per employee per year and that contribution is not counted as taxable income to the employee.
The account grows tax deferred. No taxes on the earnings until withdrawal. The funds are locked until age 18. No one can touch it. Not the parents. Not creditors. It is the child's property.
The Power of Compounding
A child born in 2025 receives $1,000 at birth. If that money is invested in the S&P 500 and left untouched, here is what it could grow to based on historical average returns of around 10% annually. At age 18, that $1,000 could be worth approximately $5,560. At age 65, it could be worth over $160,000. That is with zero additional contributions.
Now imagine the parents contribute just $50 per month from birth to age 18. That is $10,800 in total contributions over 18 years. Combined with the initial $1,000, the account could be worth around $34,000 by age 18. If left invested until age 65, it could grow to over $1.3 million. If the family maxes out contributions at $5,000 per year from birth to age 18, the account could be worth over $200,000 by age 18. If left untouched until retirement at 65, it could exceed $7 million.
These are not guarantees. Markets fluctuate. But the principle is clear. Starting early with even modest amounts creates exponential growth over time.
Who Is Eligible
Any child under 18 with a Social Security number can have an Invest America Account.
What You Need to Do
If you have a child under 18, mark July 4, 2026 on your calendar. That is when accounts open. Be ready to activate your child's account as soon as the portal goes live. The U.S. Treasury will publish official enrollment instructions and a list of approved providers when that date arrives. Parents will need the child's Social Security number to activate the account.
Final Thought
The real American dream is ownership. Owning a home. Owning a business. Owning stocks. Owning assets that grow in value and create options. Invest America gives every child in this country a foundation of ownership. It gives them capital. It gives them time. It gives them the opportunity to build wealth from day one. This is one of the most significant wealth building policies in a generation. Do not let it pass by.
