A 15-minute plan to start your child’s investment account
A quick, shame-free plan to start a child’s investing habit. Automate $25/month and keep it simple with UNest.
What’s happening
Many families feel squeezed by everyday costs. The Consumer Price Index is updated monthly, so prices for groceries, gas, and childcare can shift from month to month; see the latest BLS release here: https://www.bls.gov/news.release/cpi.nr0.htm. If you’re juggling bills, starting small with your child’s savings can still make a difference over time.
Why it matters for your family
A simple, automatic habit is often easier to keep than a big one-time push. Even $25 a month into a kids’ savings account helps build a cushion for future needs like school supplies, a first car, or training after high school. If you choose to invest, remember that values can go down as well as up. Consistent contributions and a long timeline may help you stay the course. You can start in minutes. UNest makes it straightforward to open and manage a dedicated account for your child: https://unest.co/get-started.
Tiny move today
Open a UNest UTMA and automate $25/month. Small, steady contributions may help you stay consistent through market ups and downs.
Good to know
- A UTMA is a custodial account held for a minor. Money gifted to the account is generally irrevocable and must be used for the child’s benefit. Rules can vary by state.
- Assets in a UTMA typically transfer to the child at your state’s age of majority. At that point, the young adult controls the funds.
- UTMA funds can cover more than college. They may be used for a wide range of expenses that benefit the child, like extracurriculars, a laptop, or test fees.
- UTMAs are investment accounts, not bank deposit accounts, so they are not FDIC insured. Investment values can fluctuate and you could lose money.
- 529 plans are designed for qualified education expenses and can have tax advantages. A UTMA is more flexible on spending but has different tax treatment. Compare options based on your family’s needs and state rules.
You don’t need a perfect plan to begin. Start small and automate. When you’re ready, get started with UNest here: https://unest.co/get-started.
Don't just take our word for it
Hear what trusted money experts say about why UTMA and UGMA accounts can be a smart way to invest for a child’s future.
There are some tax advantages to using UGMA and UTMA accounts… Since they’re in your child’s name, the accounts will be taxed according to their tax bracket… There are no contribution limits on UGMA and UTMA accounts.
Dave Ramsey
Personal Finance Expert
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Investing for your kid’s future
Dave Ramsey
Personal Finance Expert
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...you could consider opening an account where you can dive deeper with the kids by your side. The easiest way to do so is to open a custodial account, known as an UGMA ... or UTMA ... account.
Jill Schlesinger
Emmy winning Business Analyst
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Straightforward “starter” investing account for kids
JILL SCHLESINGER
Emmy winning Business Analyst
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You can give children money that can accumulate somewhat tax-free over time... I love them (UTMAs) because they were like, trusts that you didn't need lawyers to create.... I think it's one of the better tax breaks around though. I know hunting for tax breaks may not sound very exciting, but that's how you take care of your family.
Jim Cramer
CNBC Host
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Give children money that can accumulate over time
Jim Cramer
CNBC Host
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