If you’re a Millennial or Gen Z parent, you’ve probably seen how fast costs pile up for kids—school, activities, tech, even therapy. A UTMA account (Uniform Transfers to Minors Act) lets you save and invest for your child’s future, but it also gives flexibility beyond a 529 plan. The rule: funds must benefit the child, not cover your everyday household bills.
What It Can Cover
- Education: Tuition, books, laptops, tutoring, study abroad.
- Enrichment: Camps, sports, music lessons, robotics club.
- Health: Uncovered medical or therapy costs that support your child’s needs.
- Big milestones: Once of age, your child can use funds for housing, a car, or other adult expenses.
What It Can’t Cover
- Basic needs you’re legally responsible for (food, housing, clothing).
- Family vacations or your own debts.
- Expenses for siblings or non-beneficiaries.
Why It Matters
UTMA accounts are flexible but come with trade-offs: they count as your child’s asset for college aid formulas and the funds legally transfer to them at adulthood. That’s why consistency matters more than perfection. Small steps—like automating $25–$50 a month—add up over time.
Start today: open a UNest UTMA and put your child’s future on autopilot. What feels small now could unlock big opportunities later.
