SpaceX gave 2 million children a free share — Canada’s own savings program for kids is already doing something similar

Shotwell, who has run SpaceX as president since 2008, made the donation through Trump Accounts, a newly introduced U.S. federal savings account for children. Eligible kids born between 2025 and 2028 receive a one-time US$1,000 deposit (~C$1,420) from the federal government, and families, employers and now philanthropists like Shotwell can add more on top, up to US$5,000 (~C$7,100) a year. Shotwell said the gift will go to children ages 11 to 17 in lower-income areas, with a bit of extra weight given to kids living near her home in Texas.

When the donation was first announced, President Donald Trump publicly thanked the Shotwells and valued the gift at as high as US$325 million (~C$461 million). However, stock gifts are a moving target. As of July 20, SpaceX stock is valued at US$119.85 a share (~C$169) — meaning the real-world value of 2 million single-share gifts is actually closer to US$240 million (~C$338 million).

A wild ride for a brand-new stock

SpaceX went public on June 12, 2026, at US$135 a share (~C$189), opening at US$150 (~C$210) before an early rally briefly pushed the price above US$225 (~C$315). Since then, the stock has slid back down — dipping below its own IPO price for the first time in mid-July, and continuing to slide to its current level by July 20.

That swing is where the real lesson lies. A single share handed to a child today could be worth significantly more, or less, within weeks — let alone by the time that child turns 18. Analysts are split on where it goes from here, with 12-month price targets ranging from US$62 to US$800 a share (~C$87 to ~C$1,120).

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The Canadian version of ‘free money for kids’

Canada doesn’t have a program that hands children a share of stock, but it already has something built for a similar purpose: the Registered Education Savings Plan (RESP), paired with the Canada Education Savings Grant (CESG). If you contribute $2,500 a year to a child’s RESP, the federal government adds 20%, up to $500 a year, with a lifetime CESG cap of $7,200 per child. Lower- and middle-income families can qualify for a bit more on top of that.

There are two big differences from the U.S. program. First, RESP money is earmarked for post-secondary education rather than general retirement savings. Second, Canadian families can contribute up to $50,000 over a child’s lifetime, with no annual limit, though only the first $2,500 contributed each year draws the CESG match.

What if you wanted to gift stock to your own kids?

If a Canadian parent wanted to do something similar to what Shotwell did — hand a stock directly to a child rather than contribute cash to a registered account — the tax treatment works differently than a straightforward cash gift. Under Canada’s income-attribution rules, any dividends or interest earned on property gifted to a minor child are attributed back to the parent and taxed in the parent’s hands, not the child’s.

Capital gains work differently. If the child eventually sells the gifted shares for a profit, that gain is taxed in the child’s hands, not the parent’s — a distinction that matters if growth is the point of the gift, rather than generating income. It’s also worth remembering that gifting appreciated stock triggers a deemed disposition at fair market value, so the parent may owe capital gains tax on the transfer itself, even before the child owns anything.

What could a single share potentially grow into?

Let’s say a 13-year-old received one SpaceX share today, at roughly US$119.85 (~C$169). Under a conservative outlook of a 10% annual return, that share would be worth about US$193 (~C$272) in five years, when the child turns 18. Under a bullish outlook of 40% annual growth, it would be worth about US$644 (~C$908). And under a more modest scenario — roughly what the S&P 500 has returned annually over the past 5 years, adjusted for inflation, at just over 7% — the share would be worth about US$168 (~C$236) in real terms.

Whether Shotwell’s gift turns into a couple hundred dollars or much more by the time these kids turn 18 depends entirely on how SpaceX performs over the next several years. That uncertainty is exactly why financial planners generally don’t recommend building a child’s financial future around a single stock — gifted or otherwise — however exciting the company behind it might be.

Lessons for Canadian families

• Claim the free money that already exists here. A Registered Education Savings Plan with the CESG match is Canada’s version of “free government money for kids,” and it’s available to virtually every family. Consider this account before any individual stock gift.
• Know the tax split if you directly gift stock. Dividends and interest are taxed to you, but capital gains are taxed to your child, and the gift itself can trigger capital gains tax for you at the time of transfer.
• Don’t concentrate a kid’s account in one stock. A single share — however exciting the company — is a lottery ticket, not a plan.
• Start small and regularly. Steady RESP contributions, even modest ones made consistently from birth, generally do more for a child’s long-term future than a one-time windfall in a volatile stock.