Mark Cuban Hates Trump but Loves Kid Savings Accounts — Will He Shock Everyone?

Billionaire Mark Cuban has agelong championed the thought that kids should commencement redeeming aboriginal to unafraid their futures. Drawing from his ain puerility successful Pittsburgh, wherever helium sold garbage bags door-to-door to money tiny dreams similar caller hoops shoes, Cuban stresses hands-on fiscal lessons.

In interviews, helium advises parents to unfastened savings accounts for children and promote them to physique that archetypal cookware of money. "Open a savings relationship and bash unusual jobs to gain wealth to save!" helium erstwhile shared arsenic his apical extremity for young savers. This approach, helium argues, teaches worth and subject without handouts.

Cuban applies it astatine location too, telling his 3 kids, "It's my money, not yours," to foster independence. Even arsenic they alert private, helium pushes internships and earnings, praising his eldest for redeeming astir of her summertime pay. For Cuban, aboriginal redeeming isn't conscionable applicable -- it's a shield against entitlement and a launchpad for wealth-building.

This mindset aligns neatly with "Trump Accounts," the innovative savings vehicles President Trump introduced successful July via the Working Families Tax Cuts bill. Aimed astatine giving each American kid a fiscal caput start, these accounts relation similar tax-deferred IRAs blended with 529 plans. The authorities seeds $1,000 into each for U.S. national newborns from January 1, 2025, done December 31, 2028 -- covering astir 4 years of births. Any kid nether 18 with a Social Security fig qualifies for an account, but lone those successful the commencement model get the national kickstart.

Parents tin adhd up to $5,000 annually, employers up to $2,500 tax-free, and donors similar philanthropists tin lend too. Funds turn tax-free until property 18, erstwhile withdrawals are allowed for qualified uses similar education, location buying, oregon rolling into a idiosyncratic IRA; penalties use otherwise.

The program's standard is ambitious: millions of kids starting with $1,000, compounding implicit 18 years astatine mean U.S. banal marketplace returns of 7% annually, could balloon to astir $3,400 by property 18. With humble household additions -- say, $1,000 yearly -- the cookware could turn to implicit $50,000. If parents max retired the publication limits, the full would beryllium person to $175,000.