Personal finance expert Dave Ramsey isn't impressed with the latest government savings initiative. On a recent episode of "The Ramsey Show," he took aim at so-called "Trump Accounts," calling them exactly what they sound like: a political stunt.

These federally established investment accounts for children were created under the One Big Beautiful Bill Act last year. The program includes a one-time $1,000 government contribution for eligible children, with families able to chip in up to $5,000 annually. Sounds generous, right? Ramsey sees it differently—more politics than substance.

Why Ramsey Says Skip It

A caller asked whether this new account type, marketed as a hybrid between a 529 education plan and a Roth IRA, deserved a spot in their savings strategy. Ramsey's answer was blunt: "No. I would not be doing any of this."

He made it clear this wasn't about partisan allegiance. "I'm a fan of some of the things the president is doing. I'm not a fan of some of the things the president is doing," Ramsey explained. "I think this is a political stunt... it's just spreading around the money to get people's attention to a political office."

Co-host Jade Warshaw called it a "money squirrel"—one of those shiny distractions that looks exciting but doesn't actually help you. Ramsey doubled down: "It's not that big a deal. You've got other ways to save. It's not as revolutionary as the original Roth was. It's not as revolutionary as the 529 is."

Peter Schiff Agrees: Just a Gimmick

Ramsey isn't alone in his skepticism. Economist and SchiffGold founder Peter Schiff also criticized the Trump Accounts, arguing they're both unconstitutional and financially reckless.

"The federal government giving newborns $1,000 to invest in the stock market isn't only unconstitutional, it's a bad idea," Schiff posted on X in June. "Rather than taking on more debt that those babies will grow up to repay, it's better to reduce deficit spending now, so they don't have to pay for it later."

In a follow-up, Schiff added: "It's just a gimmick that takes the focus away from the greater harm they are doing to newborns with the Big, Beautiful Bill."

Translation: Don't get distracted by the $1,000 carrot while the rest of the legislation potentially saddles the next generation with debt.

Building Wealth Without Washington

So what's the alternative? Both Ramsey and Schiff advocate for long-term wealth strategies that don't depend on political promises or government handouts.

The reality is that sustainable wealth building happens through consistent investing, disciplined saving, and diversification—not through waiting for the next round of politically motivated account types. Whether it's maxing out existing retirement accounts, contributing to proven vehicles like 529 plans and Roth IRAs, or exploring other investment options, the fundamentals haven't changed.

The message from both financial experts is clear: don't let flashy government programs distract you from the basics that actually work.