No. of Recommendations: 3
One alternative might be to set up the UTMA at your brokerage and with the $1,000, buy a dividend paying stock, with the agreement that dividends will be paid out to the child each quarter/semiannually/annually. Kids brains are wired to deal with the here-and-now rather than longer term benefit abstractions, so the small stream of income will be real to them, thus they will likely be more attentive when you talk to them about stocks, the stock market and how dividend payments work.

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