Podcast Summary: Ramsey Everyday Millionaires

Episode: Should I Invest In A Trump Account For My Kids?
Hosts: Dave Ramsey, Dr. John Delony
Date: February 25, 2026

Episode Overview

This episode features Dave Ramsey and Dr. John Delony addressing a listener’s question about the financial steps one should take after paying off significant debt—and whether starting a new “Trump Account” (a new government child investment program) for their child is a good idea. The conversation walks through Ramsey’s famous baby steps for building wealth, the priority order of financial moves, and practical advice for parents aiming to invest in their child's future.

Key Discussion Points & Insights

1. Listener’s Situation & Question ([00:17]–[01:24])

• Tim from LA shares that he and his wife are about to pay off $148,000 in debt and have a 3-month emergency fund.
• He wonders: After paying off debt, should they prioritize a "Trump Account" (new child investment government program) or something else, especially with a baby due soon?

2. The Baby Steps Approach Remains Best ([00:50]–[02:13])

• Dave Ramsey emphasizes following his established "baby steps" in order:

  • Pay off all debts using any available savings, including the emergency fund, if necessary.
  • Restock the emergency fund even more aggressively after debts are gone.
  • Only after these steps, start investing for retirement (15% of income).

  "Then pay off your debt today and spend the next 30 days restocking the emergency fund."
  — Dave Ramsey [01:19]

3. Prioritizing Home Ownership & Kid’s Future ([01:39]–[02:13])

• Tim asks if they should focus their post-debt financial energy on saving for a home in California, or invest for their child's future.

• Dave's advice: Stick with the plan—retirement investing comes before college savings or home down payments, even if it takes many years to achieve homeownership in high-cost areas.

  "If you're going to stay in California long term, it might take you eight years to save a down payment instead of two."
  — Dave Ramsey [01:59]

4. What About “Trump Accounts”? ([02:14]–[03:07])

• Dave outlines the “Trump Account”: A government program giving families $3,000 per child born between 2025 and 2028.

  • He recommends opening one for the free money, but not putting any of your own money in, since other vehicles like the 529 plan offer more advantages.
  • The $3,000, left to grow long term, could be worth hundreds of thousands, but that’s due to compounding, not the design of the account.

• Big picture: Accept government freebies, but for active saving/investing, use established tools.

  "I would love the $3,000 from the government. After all the money I’ve given them, it’s time they give a little back...but I would invest for your kids in a 529 plan, which has tax advantages of tax-free growth."
  — Dave Ramsey [02:26]

5. How to Use a 529 College Savings Plan ([03:10]–[04:59])

• 529 plans explained:

  • Funded with after-tax dollars; grows tax-free for education expenses (now expanded to include trade schools and supplies).
  • Dave shares he invests for his own kids this way and puts in birthday gifts, etc.
  • If a child doesn’t attend college, funds can be rolled to another beneficiary or for personal education needs.

  "A 529 plan is just a plan to save for college where you use after tax money and that money then grows tax free for education purposes."
  — Dave Ramsey [03:16]

• Retirement first:

  • Dave urges that investing for your own retirement must come before the kids’ college. If you fail to save enough for your retirement, your children may have to support you.

  "If you don’t invest for retirement, your kids are gonna have to fund it. And so that’s why we tell people to put their mask on first."
  — Dave Ramsey [04:22]

• Clarity and Structure:

  • Ramsey’s baby steps provide order to financial planning, helping avoid “squirrel” distractions—like hopping onto the latest government program impulsively.
  • Reassures Tim he’s doing great and that sticking to the order works.

6. The Psychological Challenge ([04:59]–[05:15])

• Dr. John Delony addresses the emotional difficulty of sticking with a plan when novelty and social pressure present shortcuts or distractions.

  "It feels so hard when the world's all screaming at you from every different angle. It's hard to just stay the course, just stay on the path."
  — John Delony [04:59]

• Dave plays off this with humor and empathy, noting that "Trump Account" is just the latest “squirrel!” and encourages staying the course.

Notable Quotes

• Dave Ramsey ([01:19]):

  "Then pay off your debt today and spend the next 30 days restocking the emergency fund."

• Dave Ramsey ([02:26]):

  "I would love the $3,000 from the government. After all the money I’ve given them, it’s time they give a little back."

• Dave Ramsey ([04:22]):

  "If you don’t invest for retirement, your kids are gonna have to fund it. And so that’s why we tell people to put their mask on first."

• Dr. John Delony ([04:59]):

  "It feels so hard when the world's all screaming at you from every different angle. It's hard to just stay the course, just stay on the path."

Important Timestamps

• [00:17] — Tim asks about investing for his child after paying off debt.
• [01:19] — Dave: Pay off debt first, then rebuild emergency fund.
• [02:14] — Dave discusses “Trump Accounts” and their pros/cons.
• [03:16] — Full explanation of 529 plans and their tax benefits.
• [04:22] — Dave explains “put your mask on first” financial principle.
• [04:59] — John reflects on emotional difficulty of staying the course.

Summary & Takeaways

• Stick to the baby steps: Pay off debt, rebuild your emergency fund, invest for retirement (15%), then save for your children (529 plan) or home down payment.
• Only use the “Trump Account” for the free government contribution—don’t use your own funds in it.
• For robust, long-term savings for kids, 529 plans offer the best tax-advantaged growth.
• Prioritize your financial stability before focusing on your children’s funds to avoid saddling them with your retirement needs later.
• It’s easy to get sidetracked by new programs, but consistent, ordered steps build lasting wealth and resilience.