Michael and Susan Dell of Dell Technologies announced Tuesday that they’re depositing $250 into the investment accounts of 25 million American children. It’s part of a federal government initiative that allows parents to start tax-advantaged investment accounts for kids under 18.
In total, the Dells are donating $6.25 billion in partnership with the nonprofit Invest America. It marks one of the biggest charitable donations ever given directly to U.S. children.
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“We know that when children have accounts like this, they’re much more likely to graduate from high school, from college, buy a home, start a business and less likely to be incarcerated,” Michael Dell said in an interview with CNBC.
‘Trump accounts’
The donations will be deposited into investment accounts known as “Trump accounts.” The Dells’ donations will provide seed money to the accounts for children 10 and under born before Jan. 1, 2025.
Meanwhile, the federal government will provide grants of $1,000 each as seed money for accounts of U.S. citizens born Jan. 1, 2025 through Dec. 31, 2028. Each child must have a Social Security number to qualify.
Dell Technologies will match the $1,000 government grants for new children of its employees.
Those with Trump accounts will only be able to invest in low-cost diversified funds that track a U.S. stock index. Gerstner said these accounts and grants give American children the chance to benefit from U.S. stock market growth at an early age.
Brad Gerstner, CEO of Altimeter Capital, told CNBC the seed money of $250 or $1,000 alone won’t be able to compound to a substantial sum, but it will encourage parents to add their own funds.
Parents will be able to open the accounts and start adding money on July 4, 2026.
