A look at president's plan of $1,000 for each newborn

When the children of wealthy households leave the nest, they often benefit from their parents’ largesse in the form of a trust fund.

- By MORIAH BALINGIT

Less affluent peers may receive nothing at all — or even be expected to support their families when they become adults.But what if all children, regardless of their family's circumstances, could get a financial boost when they turn 18?

That’s the idea behind “Trump Accounts,” a lesser-known provision of President Trump’s tax legislation. The bill, signed into law this year, gives $1,000 to every newborn, so long as their parents open an account. That money is invested in the stock market by private firms, and the child can access the funds when they turn 18. The parents of older children can also open accounts, but they won't get the $1,000 bonus.

The new program gives the $1,000 bonus only to babies born during the calendar years of the Trump administration.

Thanks to a historic donation announced last week by billionaires Michael and Susan Dell, some children 10 and younger could receive $250 in seed money if their parents open an account.

That money is reserved for kids who live in ZIP Codes with a median family income of $150,000 or less and who won't get the $1,000 seed money from the Treasury.

Here’s what you need to know about Trump Accounts and how to claim them:

What is a Trump Account?

It’s a new savings tool where money is invested in the stock market on behalf of a child. The child can’t access the money until they turn 18 and can use it for specific purposes only, such as paying tuition, starting a business or making a down payment on a home.