What is a UGMA/UTMA account?

UGMA/UTMA stands for "Uniform Gift to Minors Act" (UGMA) or "Uniform Transfers to Minors Act" (UTMA). These are investment accounts that allow you, the custodian, to invest on behalf of a beneficiary, such as a child or grandchild. You don't need to be the parent to open an account as a custodian — custodians can be parents, grandparents, relatives, friends, etc.

Once the beneficiary reaches a certain age, they'll have access to the funds. This is known as the "age of transfer" — it's normally between 18 and 25, depending on the custodian's state.

Acorns Early is a UGMA/UTMA account. You can learn more about UGMA/UTMA accounts here and more about Acorns Early here.