Michael Dell Requests Parents Teach Kids About Compound Interest After $6.25 Billion Donation

Michael Dell asked parents to teach their children about compound interest rather than just informing them that they received $250, following the start of deposits into hundreds of thousands of U.S. child accounts from his foundation.

The request came as DELL stock rose 16% to nearly $600, during a week when Dell Technologies (DELL) shares hit their highest level since the company's founding.

Dell's $625 million donation, pledged for December 2025, will fund up to 25 million children with $250 each. The funds are deposited into government-backed investment accounts known as Trump Accounts, created under revised 2025 tax laws. The remaining balance is held in low-cost index funds tracking the U.S. stock market, with withdrawals not allowed until age 18.

Eligibility requires children born before 2025, under 11 years old, and living in zip codes with median family income below $150,000. The first deposits reached accounts in late August.

The White House is reviewing tax benefits for billionaires donating stocks to these accounts.

DELL stock closed at $588.40 on Thursday, hitting an all-time high with a 4.5% daily gain and a 16% rise over the past five trading days, driven by strong demand for AI servers.

Of 22 analysts tracked by TipRanks, 15 rated DELL as a buy with no sell ratings, and the average 12-month target price is $597.53.

Economists have questioned whether these accounts benefit all income groups equally. Dr. Derek Hamilton of The New School noted that top 10% households hold over 75% of assets in similar 529 college savings plans, suggesting the program may favor families with more resources.