Saving Beyond College: Why UTMAs Offer More Flexibility Than 529s

As highlighted in Bloomberg's recent article, the value of a traditional college degree is being questioned by more American families—particularly among young men. Rising tuition, growing student debt, and shifting job market realities are pushing many to consider trade schools, entrepreneurship, or other practical paths that don't necessarily require a four-year degree.

So what does this mean for families saving for their children’s future?

It means flexibility matters more than ever—and that’s where UTMAs shine.

Understanding UTMA vs. 529 Plans
529 plans are a popular choice for education savings, but they come with a major limitation: the funds must be used for qualified educational expenses like tuition, books, and room and board. If your child decides to pursue a nontraditional route—say, starting a business, attending coding bootcamp, or traveling abroad for a year of experiential learning—529 funds might not apply without penalty.

In contrast, a Uniform Transfers to Minors Act (UTMA) account allows you to save and invest on behalf of your child with far more flexibility. When the child reaches the age of majority (typically 18 or 21, depending on the state), the funds become theirs to use however they choose—whether that’s starting a business, purchasing a car, or yes, even college tuition.

Why UTMA Makes Sense for Modern Families

1. Greater Flexibility – UTMAs can be used for anything that benefits the child—not just school. That means more opportunities and less restriction.
2. No Required Educational Link – If your child wants to skip college altogether and start a company or buy a property, UTMA funds support that dream.
3. Easier to Gift and Contribute – Family and friends can contribute to UTMAs without navigating the strict IRS rules that apply to 529 plans.

UNest Makes UTMA Saving Simple
UTMAs sound great—but many parents don’t know where to start. That’s where UNest comes in.

We’ve modernized UTMA investing for today’s families:

• Our app is user-friendly and requires no financial expertise
• You can set recurring contributions and automate your child’s financial growth
• Our exclusive UNest Rewards program lets you earn real dollars for your child’s account through partner brands
• Contributions grow tax-advantaged and are easily managed from your smartphone

Real Dreams, Not Just Degrees
Whether your child wants to be an engineer, an artist, or an entrepreneur, your savings should support their life, not just their education. UNest’s UTMA accounts empower you to give them a strong financial foundation—whatever future they choose. The future is changing. Make sure your savings plan keeps up. Start your UNest UTMA today.

Start Saving Today