Parents are signing up children for federally funded Trump Accounts, while financial experts say the investment vehicles should be considered alongside other long-term savings options.

Mike Nelson recently signed up his 11-month-old daughter, Rose, for a Trump Account and says he is optimistic about its long-term benefits.

“She got one! We’re excited about that,” Nelson said.

Nelson said he believes the account's initial government contribution gives children a financial head start.

“I thought it was a great idea, with the seed money, and having money that can grow throughout their lifetime,” he said.

According to the Treasury Department, more than 7 million children have been enrolled in Trump Accounts so far. The investment accounts include a $1,000 contribution from the federal government for children born between 2025 and 2028.

Some Trump Accounts are also receiving additional support from billionaire philanthropists Michael and Susan Dell. Under their initiative, the first 25 million American children age 10 and younger who live in ZIP codes with a median income below $150,000 will receive an additional $250 contribution.

However, the eligibility requirement does not account for median income differences between communities that share a single ZIP code.

On Long Island, for example, residents of Huntington Station who live in the 11746 ZIP code are eligible. But the same ZIP code also includes portions of Dix Hills, where household incomes can be significantly higher.

Mitchell Goldberg, a financial advisor with the wealth management firm ClientFirst Strategy, said ZIP codes may not be the most accurate way to determine eligibility.

“ZIP codes here are big on Long Island and you could have two households in the same zip code, one who makes a lot of money and one who makes very little money. So I don't think it's a great way to go, but that's what we're stuck with,” Goldberg said.

Goldberg said Trump Accounts can be a useful savings tool, but he cautioned against viewing them as a replacement for other investment vehicles.

“I don't think it replaces a 529 plan for college funding. There are advantages that this just doesn't match for that of a 529 plan. There are also advantages for children who have earned income such as a Roth IRA. So it's one part of the toolbox,” Goldberg said.

Goldberg said families should view Trump Accounts as one option among several available strategies for investing in a child's financial future.

See if you are eligible to supercharge Trump account by clicking here.