Helping your kids alleviate or eliminate debt later in life begins with a little financial planning now. According to credit bureau Experian, the average member of Generation Z, ages 18-28, carries $34,328 in debt, up from $31,856 in 2024. The numbers increase to $132,280 for millennials, ages 29-44, and $158,105 for Generation X, ages 45-60, as they add mortgages and children’s college education to the mix.

To address this, the Trump administration introduced new tax-advantaged, IRA-style investment accounts in which children born between 2025 and 2028 can receive a $1,000 initial deposit from the federal government. Parents are encouraged to deposit up to $5,000 annually into the “Trump Account,” which could grow to as much as $742,000 by age 27.

Leslie Boden of Money Management Counselors in Sturgeon Bay says there are many ways to help your children save for their future, but there are many factors to consider whether you choose the Trump accounts, a 529 college savings plan or another strategy.

Boden says she works with students to give them a better grasp of their finances, especially in a world that is becoming increasingly cashless.

According to a Yahoo Finance report, 61% of Generation Z adults have less than $1,000 in savings, with 31% having less than $100.