OPINION:
Wealth is rarely built all at once. Instead, it is amassed gradually, through early investment, consistent saving and time in the market.
Families who can start early benefit from compounding, giving even modest contributions the chance to grow into meaningful assets. That simple reality has long shaped who builds wealth in America and who is left trying to catch up.
For too many families, access to early investment tools is limited by income, information or opportunity. The result is not a lack of effort but a lack of time.
When families are shut out of wealth-building opportunities early, the gap widens every passing year. Expanding access to early investment is one of the most effective ways to promote long-term economic mobility, ownership and financial security.
President Trump’s launch of Trump Accounts reflects this basic fact. Trump Accounts are designed to give American children a financial head start by pairing early investment with long-term growth — features touted recently in a Super Bowl ad. Eligible children receive a $1,000 federal contribution invested in an index fund, with families and others able to add up to $5,000 annually.
The funds grow through compound returns and remain invested until adulthood, when they can be used for education, homeownership or starting a business. By combining early seed funding with sustained contributions, the program expands access to wealth-building opportunities for more American families.
The program creates a tax-advantaged savings and investment account for children, paired with an initial federal contribution and the ability for families to add funds over time. It is designed to help parents invest early in their children’s futures, whether those savings are ultimately used for education, homeownership or entrepreneurship. The value of the program lies in its recognition that time, not timing, is the most powerful ingredient in building wealth.
The success of Trump Accounts will depend on more than policy design. It will depend on whether families across the country can easily access these accounts and receive the guidance needed to use them effectively over time.
Credit unions are well-positioned to help make that happen.
Credit unions operate within a nonprofit, cooperative finance model that puts long-term stability ahead of short-term gains. For generations, they have helped families save, plan and invest for the future through youth savings accounts, custodial accounts and other long-term financial tools.
More than 145 million Americans are credit union members, and many rely on these institutions as their primary financial partner.
Operating within a rigorous supervisory framework overseen by the National Credit Union Administration, credit unions bring deep experience managing specialized savings products under strong safety and consumer protection standards. Credit unions themselves maintain internal controls, independent audits and ongoing monitoring to safeguard member assets.
Together, these measures ensure that families’ long-term savings are handled with care and accountability.
Just as important, credit unions are rooted in the communities they serve. They offer in-person support, financial education and trusted relationships that help families understand not only how to open an account but also how to build wealth steadily over time. That relationship-based approach is a defining feature of cooperative finance, and it can make the difference between an account that exists on paper and one that delivers real results.
As the Treasury Department finalizes implementation guidance for Trump Accounts, the decisions made now will shape whether the program reaches its full potential. An implementation that prioritizes inclusion, simplicity and trusted delivery channels will help ensure Trump Accounts are not just opened but also used and sustained.
Although we understand the operational difficulties with launching a program like this, we know credit unions are the best option for American families. We stand ready to help be part of any rollover processes or help with a frictionless transition of these accounts to a credit union.
Wealth building is about time, discipline and access to institutions that help families turn long-term savings into lasting opportunities. Trump Accounts offer a meaningful chance to do just that. With thoughtful implementation and broad participation, this initiative can help ensure more American children start life with a foundation for financial security.
• Scott Simpson is president and CEO of America’s Credit Unions.
Please read our comment policy before commenting.