The Nest Egg #14: The child tax credit after the midterms
Plus a winter shopping money lesson and three brands that invest back in your kid.
By the UNest team · 4 min read
Hi there,
The leaves are coming down and the cold weather is on its way. In this issue, we look at what the midterms could mean for the child tax credit, a simple way to turn winter shopping into a money lesson, and a few places to shop for winter gear where a percentage of what you spend goes back into your kid’s account.
Let’s get into it!
– Mitch, from The Nest Egg team
📰 IN THE NEWS
After the midterms: where the child tax credit stands
Democrats won control of both the House and the Senate in the November 3 midterm elections, according to the Associated Press. The new Congress begins January 3, 2027, and the Tax Foundation lists a larger child tax credit among the tax changes Democrats have proposed. One example is the Keep Your Pay Act (S.4042) from Senator Cory Booker (D-NJ), who was reelected. It would raise the credit to $4,320 for children under 6 and $3,600 for ages 6 to 17, plus a $2,400 credit in a child’s birth year. The bill was introduced in March and has not had a vote.
For now, the credit for tax year 2026 is worth up to $2,200 per qualifying child under 17, with up to $1,700 of it refundable, as set by the 2025 tax law.
What this means: If a proposal like this becomes law, families with kids would get a larger child tax credit than they do today. It would first need to pass both chambers of Congress and be signed by the President, so nothing changes for your 2026 taxes. We’ll keep you updated.
Sources: Associated Press race calls, Nov. 3–4, 2026; Tax Foundation, “What a Democratic Congress Means for Federal Tax Policy in 2027,” Nov. 2026; Congress.gov, “S.4042 – Keep Your Pay Act,” introduced March 10, 2026; IRS, Rev. Proc. 2025-32. This is not investment, tax, or legal advice.
💡 FOR PARENTS
Winter shopping is a money lesson
Buying winter gear is an easy time to talk about money, because your kids are already part of the decision. For young kids, the Consumer Financial Protection Bureau (CFPB) suggests a simple line: “Every time you spend money, you make a choice.”
Start in the closet before you shop. Sort what still fits from what doesn’t, then decide together which items are needs, like a coat that fits, and which are wants, like a second pair of boots in a new color.
For older kids, the CFPB suggests thinking out loud during everyday money decisions so they can follow along. Explaining why you picked one coat over another, or why you’re waiting for a sale, shows them how you weigh a purchase. This can help your child make their own decisions in the future.
Source: Consumer Financial Protection Bureau, Money as You Grow, “Young children” and “Help your teenager reach money milestones,” accessed Nov. 2, 2026. UNest is not affiliated with the CFPB. This is not investment advice.
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🎁 EARN IT BACK
Bundle up and earn it back
Winter coats, boots and snow gear add up fast, especially when your kid has outgrown last year’s. Shop through the UNest rewards page and a percentage of what you spend goes into your kid’s UNest account.
→
2.5%
invested
→
3%
invested
→
2%
invested
Rewards rates shown reflect the UNest rewards catalog as of November 5, 2026 (Columbia Sportswear 2.5%, Patagonia 3%, Old Navy 2%, all active), are set by each partner, and are subject to change. Purchases must be made through the UNest app to qualify; taxes, shipping, cancelled orders, and returns are excluded per each partner’s terms. Rewards are paid into the child’s UNest account and are not investment returns. Nothing here is investment, tax, or legal advice.
Know a parent who would like UNest? Earn $20 when they complete 3 consecutive monthly deposits.
How was this issue? Reply to Mitch and let me know what you think.
Referral: when your friend signs up using your link and sets up monthly recurring deposits for their child, you receive $20 once they complete 3 consecutive monthly deposits. The $20 is added directly to your UNest account.
