We just startd my kids (12mo) HYSA a couple months ago, it's not alot but i put 50$ in the HYSA every month, and will do an extra 50$ on Christmases and Birthdays. This will add up to $10k by 18 without interest. This is outside of the 250 a month we put in her 529 through our state (she also has an unknown amount in a grandparent 529 she'll share with her 13yo cousin.) In addition we started dividing cash tests she gets 50/50 in hysa and 529 (at least until shes old enough to understand money and then she'll keep half with the other half going into savings.

I know nothing about investing, i just set suggested settings on my 401a and 403b and her 529. But I just found out about UTMAs and was thinking maybe my monthly and holiday contributions would be better off being invested as were not planning on giving it to her until college.

Could someone explain this like I'm 5?