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The law permits you to use the money in a custodial account as long as it's on your child's behalf.
1. In a custodial account, approval from the custodian is required in order for a minor to transact securities. The custodian of these types of accounts is usually a parent or guardian of the minor.
2. The investments managed within a custodial account are limited to mutual funds and other similar products offered by regulated investment companies.