Gifting Without Undermining Your Security

You can help without compromising your own plans.
#safegiving #legacyplanning

Parents and grandparents love to give. But generous gifts can backfire if they put your rent, medicines, or retirement at risk. This guide shows simple ways to support a child’s future and protect your own.

The 30-Second Summary

• Pick a safe number you can give every month without touching essentials.
• Automate small, steady contributions to a UNest UTMA (custodial account) for the child.
• Keep an emergency fund goal for yourself first.
• Revisit your plan every few months or after big life changes.
• When in doubt, talk to a qualified financial professional.

Step 1: Protect Your Base (no exceptions)

Before gifting, cover the “musts”:

• Housing & utilities
• Food & transportation
• Health costs (insurance, medicines, co-pays)
• Minimum debt payments
• Emergency fund: aim for 1–3 months of essential expenses (more if your income is irregular)

Quick test: If a $50 surprise bill would make you skip essentials, pause gifting until your emergency cushion is ready.

Step 2: Choose a “Comfort Number”

Pick an amount so small it feels almost silly—then automate it. If you barely notice it, you’ll stick with it.

Idea starters:

• $10/month (grandparents on fixed income)
• $5/week (parents juggling daycare, groceries)
• “Round-up” style—every time you get paid, send the spare dollars

Small + steady beats big + once.

Step 3: Pick the Right Bucket (why a UTMA)

A UNest UTMA (Uniform Transfers to Minors Act) account lets you gift for a child’s future with flexibility—not just college. Money can help with things like camps, a first car, or setting up an apartment when they’re older (rules vary by state).

What to know (plain English):

• The account is for the child’s benefit.
• You manage it now; the child typically gains control at your state’s “age of majority.”
• Gifts are generally irrevocable.
• Investments can go up or down—no promises on returns.
• For taxes and state rules, ask a qualified adviser.

Step 4: Use a Simple Split

After your bills and minimum savings:

• 90% stays with you (emergency fund, retirement, health)
• 10% goes to the kid’s UTMA (or less—start smaller if needed)

On $60 “leftover” each month, $6 could flow to UNest. That’s it. Habit > heroics.

Step 5: Create an Auto-Pilot

• Pick a date (e.g., the Friday after payday).
• Automate the transfer in the UNest app.
• Name the goal (e.g., “Maya’s Future”). People fund named goals more consistently.

Guardrails: When to Pause Gifting

Hit the brakes if:

• You’d carry a credit card balance to keep gifting
• You had a medical or job setback
• You dipped below your emergency fund floor
• A major bill is due (car repair, dental work, property tax)

Pausing is smart—not selfish.

Scripts You Can Use (zero drama)

To the other parent:
“Hey, I want to help build [Child’s Name]’s future without stretching our budget. I’m thinking $5 a week into a UNest UTMA. If things get tight, we’ll pause. Sound good?”

To grandparents/relatives:
“Instead of another toy, would you consider $10 into [Child’s Name]’s UNest UTMA this month? Small gifts add up, and it helps us keep the budget steady.”

To yourself (boundary check):
“I don’t give from money I need for meds, housing, or food. I give the amount I won’t miss.”

Red Flags to Avoid

• All-or-nothing gifts (“I’ll fund $1,000 or nothing”)
• Using high-interest debt to keep gifting
• Gifting to impress family or friends
• Skipping health care or retirement contributions to give more

Your long-term security is part of the child’s security.

Quick FAQ

Q: What if I can’t afford anything right now?
Start with $1–$5. Or contribute seasonally (birthday, tax refund month). Consistency matters more than size.

Q: UTMA vs 529?
529 plans are great for education-focused expenses. UTMAs are more flexible for a child’s broader needs. Many families use both. For tax specifics, consult a professional.

Q: What happens when they turn 18 (or 21 in some states)?
Typically, control transfers to the child at your state’s age of majority. Plan expectations early and keep talking as they grow.

10-Minute Setup Checklist

1. Confirm your emergency fund floor.
2. Pick a comfort number ($5–$25).
3. Open a UNest UTMA (takes minutes).
4. Choose a simple investment profile that matches your timeline and risk tolerance.
5. Automate the transfer.
6. Name the goal (“Aiden’s Future”).
7. Invite family with your UNest gift link (one text).
8. Put a monthly 5-minute check-in on your calendar.
9. If life changes, pause or reduce—no guilt.
10. For taxes/estate questions, talk to a qualified adviser.

Call to Action (gentle + specific)

Ready to help without hurting your own plan?

• Open a UNest UTMA and start with $5–$10.
• Automate it so you never have to think about it.
• Share your gift link with one relative this week.

Small, steady steps build real momentum—for them and for you.

Educational only. Not financial, legal, or tax advice. Consider speaking with a qualified financial adviser for guidance on your situation.