Money word

UTMA

A custodial account an adult manages for a child until the age of majority.

A UTMA is a custodial brokerage account: an adult manages it on the child's behalf, but the money legally belongs to the child and becomes fully theirs at the age of majority (18–21+, depending on the state). It's the flexible, all-purpose choice for investing on a kid's behalf.

Explain it to your kid

"An account a grown-up manages for a kid until they grow up."

Want to go deeper? UTMA, explained.

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