Custodial Account Tracker: What to Track in a UTMA

What should you track in a custodial account?

A custodial account can sit untouched for years.

You may contribute regularly and let the investments grow without checking it often. But there are a few numbers worth knowing as your child gets older:

• Current account value
• Contributions versus investment growth
• Cost basis
• When your child gains control of the account

Each tells you something different.

What is the account worth today?

Start with the current balance.

This is the total value of the cash and investments inside the account. Your brokerage will usually make this number easy to find.

The balance matters, but it doesn't tell you how the account got there. That's why the next number can be more useful.

How much came from contributions versus growth?

Suppose your family has contributed $10,000 and the account is now worth $13,000. That means $3,000 came from investment growth.

Showing your child both numbers can make investing easier to understand. They can see that some of the account's value came from money already invested.

Over time, that gap may become more meaningful than the balance itself. It's the clearest version of compound growth a child will ever see, because the money is theirs.

Why does cost basis matter?

Cost basis is generally what was paid for an investment.

If shares were purchased for $20 and later sold for $30, the difference helps determine the investment gain for tax purposes.

This matters in a custodial account because investment income and gains can have tax consequences for your child. It also matters when stock was gifted into the account, since gifted shares can carry over the giver's cost basis.

You don't need to calculate this yourself each time you check the account. Your brokerage usually keeps the records. For questions about taxes, sales, or gifted investments, talk with a tax professional or financial advisor.

When does your child take control?

A custodial account belongs to your child.

You manage it as the custodian until control must transfer under your state's rules. The applicable age varies by state and can also depend on how the account was established. That makes the transfer date worth checking well before your child reaches it.

Knowing the date gives you time to explain:

• What the account contains
• How investments work
• What taxes may apply when investments are sold
• What changes when they gain control

Our age of majority by state guide has the full table, and what happens when your child turns 18 covers the handover itself.

What does a custodial account tracker do?

A tracker gives you another way to view the account without replacing your brokerage. You can use it to follow the account value, growth, and other information over time.

Trades, contributions, and withdrawals still happen through the brokerage that holds the account.

This can also give your child a way to see the account without a brokerage login or a debit card attached to it.

What can your child learn from the account?

A custodial brokerage account may hold stocks, funds, cash, or other investments. That gives you opportunities to explain what your child owns in terms they understand.

If they recognize a company or understand what a fund owns, you can use that as a starting point. Then you can show them how the value changes over time, and how long-term investing works in a real account with their name on it.

Where MemoryBank fits

MemoryBank connects to custodial accounts you've already opened and gives your child a simpler view of what they own. You can also see their custodial account alongside other accounts, such as a 529 or a savings account. You can see how the custodial view works.

MemoryBank is not a brokerage. It cannot receive, keep or transfer securities. Your brokerage remains the place where you manage the account and move money.

What should you do next?

Start by logging into your child's custodial account and finding:

1. The current balance
2. Total contributions, if available
3. Cost basis information
4. The age when control transfers under your state's rules

Then decide which of those numbers you want your child to understand now. You don't need to explain the whole account at once. Start with the balance, what your family contributed, and how much the investments have changed.

Frequently asked questions

Is there an app to track a UTMA?

Several kinds of app will display one. Net-worth aggregators show it as a line among household assets. MemoryBank organizes accounts per child and gives the child their own view of what they own. It's on the App Store and Google Play as well as in any browser. Your brokerage almost certainly has its own app too, and that's still where you manage the account.

Is a custodial account tracker the same as a net-worth app?

They overlap but they're built for different jobs. A net-worth app rolls every account into one household total, which is what you want for your own planning. A custodial account tracker keeps each child's accounts separate, because a UTMA legally belongs to that child rather than to the household.

Can my child see their custodial account without my brokerage login?

Yes, and that's a common reason parents look for a tracker. Brokerage logins carry full control of the account, so handing one to a child isn't practical. A tracker can show the balance and holdings without granting any ability to trade, transfer or withdraw.

Can I take money out of my child's custodial account?

Assets in a UTMA or UGMA legally belong to the child, and withdrawals are generally expected to be used for that child's benefit. The custodian can't reclaim the money for themselves, and the account can't be transferred to a sibling. Specific situations are worth running past a tax professional or financial advisor.

Who pays tax on a custodial account?

The child does, because the account is theirs. Investment income above certain thresholds can be taxed under the kiddie tax rules, which may apply the parents' rate to part of it. Both the thresholds and the treatment change over time, so check the current year's figures or ask a tax professional.