Summer Is Expensive. Here's How a UTMA Can Help.
Summer used to mean popsicles and sprinklers. In 2026, it means registration deadlines, gear lists, and bills that arrive all at once. Whether it's baseball leagues, summer camp, travel tournaments, or specialty programs, the cost of giving your child a rich summer experience has never been higher. And it only goes up as they get older.
What Parents Are Actually Paying This Summer
The numbers below aren't hypothetical. They're pulled from 2026 data from the American Camp Association, TrustedCare, the Aspen Institute, and youth league registrations across the country.
Youth baseball and softball. Local rec league registration runs $75 to $225 per season depending on your area, and that's before equipment, uniforms, and snack bar fees. For families whose kids move into travel or select baseball, costs jump dramatically: the average travel baseball family spends $3,000 to $5,000 per year on travel and lodging alone.
Day camp. Day camps average $73 to $107 per day according to the American Camp Association, or roughly $365 to $535 per week. Over a full summer of 8 weeks, that's $2,900 to $4,280 for one child. Premium or specialty day camps can run $500 to $800 per week or more.
Sleepaway camp. Sleepaway camp averages $1,000 to $2,000 per week nationally, with top-tier overnight camps running $2,700 to $4,700 for multi-week sessions.
Specialty camps. Specialty camps focused on coding, robotics, theater, horseback riding, or soccer typically cost $80 to $220 per day, or $350 to $1,000 per week depending on whether the program is residential.
Add it all up for one child, one summer: youth baseball registration ($200), four weeks of day camp ($1,500), one week of sleepaway camp ($1,500), plus gear, equipment, and transportation ($300). That's $3,500 or more. Multiply that across multiple children and multiple summers, and the picture gets serious fast.
Why a UTMA Changes the Math
Most parents are familiar with 529 plans for college savings. But 529s come with a critical limitation: the funds must be used for qualified educational expenses. Use them for anything else, including summer camp, sports leagues, or a first car, and you'll face taxes plus a 10% penalty on the earnings.
A UTMA custodial account has no such restriction. The money your child accumulates can be used for absolutely anything once they reach adulthood. College, yes, but also summer camps, enrichment programs, sports leagues and equipment, a first car, a home down payment, seed money for a business, or a gap year.
That flexibility is what makes a UTMA uniquely powerful for families who want to invest for their child's entire future, not just one chapter of it.
Starting Early Makes Summer Affordable
Here's the math that changes the way most parents think about this. $50 per month invested from birth, at an average 7% annual growth rate:
- By age 5: approximately $3,600
- By age 10: approximately $8,700
- By age 18: approximately $21,000
A family that starts when their child is a newborn and invests $50 per month has enough by the time their child turns 5 to cover multiple summers of day camp without touching another dollar of their paycheck.
The families who feel the pinch of summer costs most acutely are the ones who never got ahead of it. A UTMA started early, contributed to consistently, and supplemented by family, is how you get ahead.
Everyone Can Contribute
One of the most underused features of a UTMA account is that anyone can contribute, not just parents. Grandparents, aunts, uncles, and family friends can all add money to your child's account, making every birthday, holiday, and milestone an opportunity to invest instead of accumulate more toys.
In 2026, each person can give up to $19,000 per year to a child's UTMA without triggering gift tax ($38,000 for married couples who elect gift-splitting).
Share your child's UNest contribution link with family before birthdays and the holidays. Instead of more stuff, give them a summer.
The Tax Benefits Don't Hurt Either
UTMA accounts come with favorable tax treatment in 2026. The first $1,350 of your child's unearned income is completely federal income tax-free. The next $1,350 is taxed at your child's rate, typically just 10%. Only amounts above $2,700 are taxed at the parent's marginal rate.
For most families in the early years of investing, their child's UTMA earnings will fall entirely in the tax-free or low-tax tiers.
How to Start Today
Opening a UTMA account for your child with UNest takes under 5 minutes and starts at just $25. Set up a recurring monthly contribution and let time handle the rest. No financial advisor. No complicated paperwork. No reason to wait until next summer.
The best time to start was last summer. The second best time is today.