Capital Gain
The profit made when you sell an investment for more than you paid.
A capital gain is the profit realized when you sell something for more than it cost. In a taxable account like a UTMA, capital gains can have tax consequences, though a child's low tax bracket sometimes opens the door to tax-gain harvesting. Gains aren't 'real' for tax purposes until you actually sell.
Explain it to your kid
"The profit you make when you sell for more than you paid."
🐷
Try MemoryBank free →A new money word every week
MemoryBank's Weekly Recap teaches your kid one money word at a time, tied to what their own account actually did that week.
MemoryBank is a display and education tool, not a financial advisor. Nothing here is investment, tax, or legal advice.