- Acorns Early is a simple way to invest in your child’s future with a UTMA/UGMA account.
- Parents, guardians, or family members can create a custodial account for a child.
- Get started with just $5 and set up recurring daily, weekly or monthly investments.
- Stockpile is an online brokerage enabling investors to buy and sell stocks or fractional shares of stocks, ETFs, ADRs, and every stock in the S&P 500.
- Open an individual brokerage or custodial account (under 18 years old).
- Stash Invest is a robust financial app to start and grow your investments in stocks, ETFs, and fractional shares for as little as $1.
- Get investment and banking features to help you achieve your investing goals.
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- M1 Finance is a free finance app allowing you to invest, borrow, and spend in one platform.
- $0 account minimum. 100% commission-free trades and no hidden fees.
What is a custodial account?
A custodial account allows a parent, guardian, or other family members/friends to open an investing account for a minor. A minor’s age varies by state laws.
The custodian (adult) manages the money and investments until the minor reaches the “age of majority.” That age is usually 18 or 21 years old, depending on the Custodian’s state.
What happens when the child reaches the age of majority?
After reaching the age of majority, the minor assumes control of the account and can do as they wish with the funds.
Can the money be used before the age of majority?
In a custodian account, the parent or legal guardian can use the money for a purpose that benefits the child. This includes:
- Paying for education (preschool, secondary, private)
- Clothing and supplies
- Activities (sports, instruments, etc)