The recently enacted One Big Beautiful Bill Act (OBBBA) introduces a new type of savings vehicle, dubbed “Trump accounts,” designed to help parents invest in their children’s financial futures. These accounts function similarly to IRAs, offering a tax-advantaged way to build savings for the next generation.
A recent analysis by SmartAsset identified the 10 U.S. states expected to benefit the most from these new accounts. The ranking was based on a combination of demographic factors, including the percentage of women aged 20-34 within each state’s population and their corresponding fertility rates. This approach estimates the potential number of children born annually, indicating where the demand for these savings accounts is likely to be highest.
Top 10 States for Trump Accounts
Here’s a breakdown of the states ranked by SmartAsset, along with key data points:
- Utah: 11.73% of the population are women aged 20-34, with a birth rate of 97 per 1,000 women. There are approximately 411,070 young women in the state.
- Colorado: 11.07% of the population are women aged 20-34, with a birth rate of 79 per 1,000 women. Colorado has about 659,739 young women.
- North Dakota: 10.79% of the population are women aged 20-34, with a birth rate of 110 per 1,000 women. The state has approximately 85,918 young women.
- Texas: 10.71% of the population are women aged 20-34, with a birth rate of 84 per 1,000 women. There are roughly 3,352,189 young women in Texas.
- Massachusetts: 10.71% of the population are women aged 20-34, with a birth rate of 59 per 1,000 women. Massachusetts has about 764,069 young women.
- Washington: 10.60% of the population are women aged 20-34, with a birth rate of 74 per 1,000 women. The state has approximately 843,468 young women.
- California: 10.52% of the population are women aged 20-34, with a birth rate of 65 per 1,000 women. California has roughly 4,149,333 young women.
- New York: 10.48% of the population are women aged 20-34, with a birth rate of 63 per 1,000 women. The state has approximately 2,081,895 young women.
- Georgia: 10.47% of the population are women aged 20-34, with a birth rate of 86 per 1,000 women. Georgia has about 1,170,142 young women.
- Alaska: 10.46% of the population are women aged 20-34, with a birth rate of 122 per 1,000 women. The state has approximately 77,426 young women.
The data suggests that states with higher concentrations of young women and robust fertility rates will likely see the greatest uptake of these new savings accounts. This is because these states have a larger pool of potential account holders, making them prime targets for financial institutions promoting the Trump accounts. The long-term impact of these accounts on individual families and the broader economy remains to be seen.
