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Child savings account

By Terry Savage on October 19, 2020 | Wild Card & Pandemic Related

Since many banks not allow minor to have high yield savings account, what best way to grow asset?

Terry Says

No state allows a minor to have any kind of investment or savings account. But you can establish a “custodial” or UGMA account (uniform gifts to minors) — with yourself as custodian for your child. However, that could have bad consequences, since money in a child’s name weighs much more heavily against the family in the FAFSA college financial aid calculations down the road. AND,when the child reaches age 18 –or the age of majorityin his/her state, the money belongs to the Child!

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