With rising home prices, tight inventory, and high interest rates, buying a first home has become one of the biggest financial hurdles facing the next generation. For many parents, the question isn’t whether to help – it’s how.
A recent JPMorgan article highlights the increasing role parents play in helping their children buy homes. Whether it’s offering a down payment, co-signing a loan, or even setting up a trust, families are getting creative to support homeownership goals.
But what if you could start preparing long before your child is even house hunting?
That’s where a UTMA (Uniform Transfers to Minors Act) account can make all the difference.
Why Start Early With a UTMA?
UTMA accounts are custodial investment accounts that let parents or guardians invest on behalf of a minor. When the child reaches the age of majority (typically 18 or 21), the funds become theirs to use – not just for college, but for any purpose that benefits them.
That flexibility is powerful.
Instead of locking savings into education-only plans like 529s, a UTMA gives your child the freedom to use funds toward what they need – including:
- A down payment on a starter home
- Closing costs or furnishing expenses
- Paying off high-interest debt before buying
- Even starting a small business or trade career if homeownership isn’t the first goal
It All Starts With Small Steps
The earlier you start, the more time your child’s investments have to grow. With the power of compounding, even small, regular contributions can become meaningful over time.
By the time they’re ready to buy a home in their 20s or 30s, they could have tens of thousands of dollars to use toward the purchase – without taking on extra debt or relying solely on family help at the last minute.
Support Their Future – On Their Terms
Your child’s future isn’t one-size-fits-all. Saving in a UTMA account keeps their options open, whether they pursue higher education, homeownership, or another path entirely.
💡 Ready to give your child a flexible financial head start? Open a UNest account today and start investing in their future – whatever form it takes.
