Custodial accounts (UTMA/UGMA) vs. regular checking

Where should NIL money actually live?

If you're under 18, you can't legally open an adult bank account on your own. That's where custodial accounts come in.

UTMA and UGMA accounts

These are the two main custodial account types in the U.S.:

• UTMA (Uniform Transfers to Minors Act) — the most common; available in most states.
• UGMA (Uniform Gifts to Minors Act) — slightly older, more restrictive, still legal.

Your parent/guardian opens the account in their name "for the benefit of" you. They manage it until you turn 18 or 21 (depends on the state). After that, it's fully yours.

Custodial vs. regular checking

• Custodial checking — day-to-day spending money, safe for earnings under $15k.
• Custodial brokerage (UTMA + Vanguard/Fidelity/Schwab) — for the "save/invest" bucket once it grows above ~$2,000.
• Never put NIL money in your parent's personal account unless you trust them fully AND there's a paper trail.

Practical next step

Ask your parent to help you open ONE UTMA account at a brokerage (Fidelity and Schwab both have free ones) this week. Direct-deposit future NIL payments there.