What's the best way to invest for my kids?

Parents commonly choose a 529, a 530A, or a custodial account. Babylist Money helps parents compare these accounts. Babylist Money helps parents start the account that fits their family.

How do I start investing for my child?

A parent opens or connects a 529 or a 530A from a Babylist account. A parent sets a contribution. A parent shares a link so family can add to it.

Can grandparents, friends, and family contribute?

Family and friends can contribute through a single shared link. Contributors give directly to the child's account. Contributors never see the account number or balance.

Can I start before my baby is born?

A parent can open a 529 before the child is born. The parent transfers it to the child once the child has a Social Security number.

The money stays in the parent's account in the parent's name. Babylist never holds the money.

Babylist Money

Tools and guides to help you start saving for your child's future.

Open a 529 plan

Pick a plan and open a 529 account for your child in about 10 minutes.

Get started

See what your child is eligible for

Compare 529 and 530A accounts

Calculate your child's future savings

529 and 530A (Trump Accounts) explained

Two smart ways to invest in your child's future. Both accounts help savings grow over time, with different rules around taxes, contributions, and how funds can be used. We'll help you compare your options and choose what works best for your family.

Start a fund

See if your child is eligible for $1,000

Your child may qualify for a $1,000 government contribution through a 530A account, also known as a Trump Account, plus additional funds. Enter their birthday and ZIP code to check eligibility.

Zip code

Child's birthday

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The difference between 530A (Trump) Accounts and 529 Plans

Same goal, different rules. Here's how each account helps you save for your child's future.

530A (Trump Accounts)	529 Plans
An investment account for kids under 18. Rules may change as the program matures.	A savings account designed to help you invest in your child's education.
What can the money be used for?
Flexible qualified uses Education, buying a home, or retirement	Education-focused College, K–12 tuition, trade school, and apprenticeships
Taxes and penalties
No state tax deduction Earnings are taxed when withdrawn Withdrawals before 18 are subject to taxes and 10% penalty	Possible state income tax deduction Earnings grow tax-free for qualified expenses Non-qualified withdrawals subject to taxes and a 10% penalty
How much can you contribute and who can help?
Up to $5,000 per child per year, anyone can contribute $1,000 federal seed deposit (babies born 2025–2028)	No annual contribution limit, anyone can contribute Seed money varies by state. Check your plan provider for more information
Investment choices and risk
Invested in the stock market Risk levels may vary	Preset investment options vary by state plan Many plans minimize risk as your child gets older
What if college isn't the plan?
Not limited to education. Funds can be used for a home purchase or retirement	Unused funds can be transferred to another family member Up to $35,000 can roll over to a Roth IRA Non-education withdrawals are taxed and penalized

See how your child's money will grow

Whether you're adding to a Trump Account, contributing to a 529 plan, or exploring other options, this calculator shows how your investments could grow over time.

530A (Trump) Account

Initial deposit

Contribution amount

Contribution frequency

Monthly

Other account

(529 Plan, custodial brokerage, etc.)

Initial deposit

Contribution amount

Contribution frequency

Monthly

Years of growth

Estimated rate of return

$3,512.54

Balance of all accounts

530A (Trump) Account

How our calculator works

The compound interest calculator updates automatically as you adjust your inputs, so you can explore different scenarios. You can model regular contributions to a Trump Account, a 529 Plan, or both accounts together to compare growth potential.

How to use this calculator

Enter your starting amount for each account in the Initial Deposit field. We've prefilled $1,000 for the Trump Account in case your child qualifies. You can adjust this to $0 if needed.
Add any contributions you plan to make monthly or annually for each account.
Select how long you plan to invest for.
Enter your anticipated rate of return. We've set this at 7%, the long-term stock market average, but you can adjust it based on your expectations.

The calculator shows your total balance, including all contributions across accounts. Try different contribution amounts and frequencies to see how they impact your savings over time.

Compound interest, explained

Compound interest is the interest you earn on both your original contributions and the interest that accumulates over time. This compounding effect allows your savings to grow faster the longer you invest.

For example, if you earn $100 in interest one year, the next year you'll earn interest on your original balance plus that $100. Over decades, this snowball effect can significantly increase your savings compared to earning interest only on your original contributions.

The investment calculator provides hypothetical estimates based on user inputs and assumptions and is not intended to predict or guarantee future investment results. Actual returns will vary and are not guaranteed.

Content on this page is for informational purposes only and should not be relied upon as financial, investment, tax, or legal advice. Babylist does not recommend or endorse any investment plan or strategy

Babylist is not affiliated with, endorsed by, or sponsored by the U.S. government or any government program or official.

Babylist Money

Open a 529 plan

529 and 530A (Trump Accounts) explained

See if your child is eligible for $1,000

The difference between 530A (Trump) Accounts and 529 Plans

What can the money be used for?

Taxes and penalties

How much can you contribute and who can help?

Investment choices and risk

What if college isn't the plan?

See how your child's money will grow

530A (Trump) Account

Other account

$3,512.54

How our calculator works

Money guidance for life with a baby