As parents, you want to get your children set up on the right path. You want to ensure that, should rough times fall upon you or your career, your child’s future is protected. It’s a scary thought, but one you no doubt must consider. It is one of your only means of protecting your child from the trials and tribulations that could potentially come your way, and you don’t want your children to suffer negatively as a consequence of your misfortune.

The problem is, some people set up custodial accounts for flagrant uses. For instance, some parents have used their children’s accounts to qualify for a lower tax bracket. However, most people use custodial accounts as they’re meant to be used; which is to say, they put money aside for their child for when they come of age—like a preemptive savings account. That’s a good thing!