HOW TO GIFT YOUR KIDS STOCK
- KidVestors
- Mar 2
- 6 min read
Updated: Apr 2
TL:DR
We’ve all heard the phrase “it’s the thought that counts” when it comes to gifts. But what if we told you that you could give your kids something far more valuable than just the hottest new toy or the latest gadget? A gift that can grow over time, teach valuable life lessons, and set them up for financial success?
Yep, we’re talking about gifting stocks to your kids.
Does your daughter spend all day on social media? Consider gifting them META stock.
Does your son spend all day playing on his phone? Consider gifting him some Apple stock.
Are your niece and nephew always watching movies? Consider gifting some Netflix stock.
Or invest in index funds and your child can easily own all of these and more!
Now, we know what you’re thinking: Stocks? For kids? It might sound a little unconventional, but hear us out. Gifting stocks can be one of the best ways to introduce your kids and teens to the world of investing and help them understand how money works in the real world. Plus, it’s the kind of gift that can keep giving for years—literally!
So, let’s talk about it: why should you gift stocks, how can you do it, and how can you turn it into an opportunity for your kids to learn the ropes of investing?
Well... what about toys?
Let’s start with the “why.” Sure, toys, the latest video games, or technology are fun, and nothing is better than seeing those smiles on your children's faces when they open their gifts, but most likely those gifts will lose their novelty over time. Meanwhile, stocks have the potential to grow, teaching kids about the power of compounding and patience.
What Are The Benefits of Gifting Stocks To Kids ?
Here’s why that in addition to toys and technology, it’s a smart idea to also consider gifting stocks:
Long-term value: A toy will break, but a stock could appreciate in value. Imagine giving your child shares of a company like Disney or Apple when they’re young and watching it grow by the time they’re in college.
Teachable moments: Owning stocks offers the perfect opportunity to introduce financial concepts early. You can teach them about companies, earnings, dividends, and the stock market in a way that’s engaging and relevant.
Setting them up for the future: Starting early with investing gives your kids a major leg up. As we all know, the earlier you start, the more time you have to take advantage of compound interest—a secret sauce for long-term wealth.
How to Gift Stocks to Your Kids
So, you’re sold on the idea of gifting stocks. Now, let’s talk logistics. You can’t exactly walk into a store and wrap up shares of your favorite company in a bow. But it’s actually not as complicated as you might think. Here are a few ways you can go about gifting stocks to your future KidVestors:
1. Custodial Brokerage Accounts
The most common way to gift stocks to kids is through a custodial brokerage account. These accounts allow you to invest in stocks, ETFs, and other assets on behalf of your child, and when they turn 18 (or 21, depending on your state), the account transfers to them.
Popular custodial brokerage accounts include:
Fidelity Youth Account: Fidelity offers an easy-to-use custodial account, and there are no fees to worry about. Plus, they have tons of educational resources for parents and kids to dive into together.
Charles Schwab Custodial Account: Schwab offers custodial accounts with no fees or minimums and access to a wide range of investment options. They also have a great reputation for customer service and educational tools.
E*TRADE Custodial Account: E*TRADE is another solid option with no account fees or minimums and an intuitive platform.
2. Gift Stock Through a Gifting Platform
If you want to gift a single share or a few shares without going the full custodial account route, there are platforms specifically designed for gifting stocks. These platforms make it super easy to give the gift of stock without all the hassle:
GiveAShare - Ideal for parents who want to gift stock certificates as physical, visual gifts.
3. Direct Transfer of Stock
If you already own stock and want to pass some along to your child, you can transfer it directly to them. This usually involves working with your brokerage to move shares into a custodial account or a gifting platform. It’s a more hands-on approach, but it gives you the flexibility to gift specific stocks that you’ve hand-picked for your child’s future.
Turn It Into a Learning Experience
Okay, so you’ve got the stocks or the account ready to go. But this isn’t just about handing over some shares and calling it a day. The real value comes from the lessons that accompany the gift. This is the perfect chance to teach your kids about the stock market and why investing is important.
Here’s how you can make gifting stocks a fun and educational experience:
Involve Them in the Process: Kids are more likely to take an interest in stocks if they feel a sense of ownership, so get them involved! But before you randomly start throwing darts at stocks, do a bit of digging.
Start with Companies They Know: Look for companies with a solid track record, maybe those your kids already know and love, or ones shaping the future. Tech? Gaming? Sustainable energy? Just make sure to diversify – don’t put all the eggs (or stocks) in one basket.
This is actually a great activity to do together. Get the conversation going by using our Free Stock Market Guide to begin researching the best stocks to add to your portfolio.
When they see that they own part of that company, it can spark an interest in learning more about how businesses operate and how the stock market works. Suddenly, owning stock becomes personal and relatable. They’ll want to check how their favorite brands are doing, and it can spark conversations about how businesses work. Plus, it’s pretty cool to tell their friends that they own a slice of their favorite brand!
Tip: Check out our stock market game!
Use Games and Apps: We're all about making learning about finance and investing fun. Our personal favorite (naturally) is KidVestors, where kids can play stock market games and earn KV Bucks as they learn how to invest (oh and we pay our students real cash too!). Try it out for free!
Make It a Family Challenge: Why not turn investing into a little friendly family competition? See whose stock performs the best over time, or celebrate small wins like earning dividends together.
Track Progress Together: Get your kids involved in checking on their stocks periodically. Explain concepts like growth, dividends, and market trends in simple terms. Show them how their investments are growing (or shrinking—an important lesson in itself) and encourage them to think long-term.
Wrapping It Up (No pun intended...)
Gifting stocks to your kids is more than just handing them a few shares. It’s about giving them a future of financial literacy, responsibility, and the possibility of real wealth. With a custodial account, some fractional shares, or a framed stock certificate, you can make this gift feel as special as any toy or gadget. And when you invite your kids to learn about investing along the way, you're doing them an even bigger favor—they'll thank you when they’re older, trust us.
Who knows, this could be the start of their very own journey toward financial independence. And isn’t that what we all want for our kids?
FINANCIAL EDUCATION & INVESTING FOR KIDS AND TEENS
FREE LIVE CLASS FOR PARENTS
Enroll your student in our financial literacy platform here.
If your school or group is looking for a finance curriculum to teach your students about how to manage money, start here to learn more on how to bring KidVestors to your classrooms!
Parents, teach your kids money and make money conversations normal in your household by visiting here.
Commenti