Credit Card Use Is Down. Use That Space to Fund Your Kid’s Future
What’s happening
Americans are cutting back on credit-card use. According to MarketWatch (2025-10-07), credit-card balances fell 2.5% year over year in August—the steepest drop since 2020. The Federal Reserve’s G.19 Consumer Credit report shows revolving credit decreased at a 5.5% annual rate that same month.
That means fewer swipes, smaller balances—and possibly a bit of breathing room in family budgets.
Why it matters for your family
If you’ve been spending less, that’s space you can redirect with intention. Instead of letting those few extra dollars disappear into “miscellaneous,” channel them toward your child’s future. Even a small monthly contribution can start compounding over time.
Tiny move today
- Automate $25/month into a UNest UTMA. Start small - the habit is what matters most.
- Share your UNest gift link with one relative who usually buys toys or clothes. Ask for a single $25 contribution this month instead.
Open a UNest UTMA and start contributing monthly. Consistency beats waiting for “perfect.”
“Say this, not that”
- Say: “We’ll move $25 on the 1st of every month into the kid fund.”
- Not: “We’ll try to save more when things calm down.”
Where a UTMA fits (plain English)
A UTMA (Uniform Transfers to Minors Act) account is a custodial investment account for a minor. Funds must benefit your child and can cover more than college—think sports fees, summer camps, or a first laptop. Gifts are irrevocable, and assets typically transfer to your child at your state’s age of majority.
A 529 plan is great for education, but a UTMA gives flexibility for life milestones outside the classroom.
Quick budget re-route ideas
- Cancel one “nice-to-have” subscription → move $25/month to UNest.
- When a card balance drops, keep your payment the same and redirect the difference to your child’s account.
- If you score a sale discount, skim that amount into your UNest UTMA.
Keep it balanced
This content is educational and not tax or legal advice. Market values can rise or fall. Choose an amount that fits your family’s budget - small and steady deposits can go a long way.
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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