Hey there, fellow last-minute gift hunters! Don't sweat it if you're still on the birthday or holiday shopping grind - we've got a gift idea that's relatively inexpensive and thoughtful!
Ever thought about giving stocks as a present? Yep, you read that right! It's not just any gift; it's the gift that keeps on giving (and growing!).
Does your daughter spend all day on social media? Consider investing in 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!
Purchasing stocks for a friend, your child, or loved one is a great way to potentially get them interested in investing!
Alright, so let’s get to the nitty-gritty: How do you actually gift stocks to a child? It’s not as hard as it sounds, we promise!
STEP 1: PICK A PLATFORM
You’ll need a brokerage account. Think of it as your magic portal to the stock market. There are tons out there, from Robinhood to Fidelity to Charles Schwab. Find one that fits your style, has minimal fees, and is user-friendly – because who has time for complicated interfaces?
Stockpile
Stockpile is another easy to use platform that allows you to buy however many shares of stocks that you want! Just visit Stockpile.com, click ‘Buy’, then search for the companies that you are interested in buying. Once you find companies of interest, submit your purchase (and yes, you can even purchase fractional shares if you don’t have enough money to buy a single share).
Note: You do not have to have a stockpile account to buy stocks for yourself or others. You can use the guest checkout option.
STEP 2: DO YOUR RESEARCH
Before randomly throwing darts at stocks, do a bit of digging. 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.
STEP 3: SET UP A CUSTODIAL ACCOUNT
Kids can’t legally own stocks until they’re adults, so you’ll need to set up what’s called a custodial account (since you're the custodian). It’s like a trusty guardian for those stocks until they come of age. You, as the responsible adult, will manage it until they’re ready to take the reins.
STEP 4: MAKE IT OFFICIAL
You’ve picked the stocks, set up the account – now it’s time to actually buy those shares! Head to your chosen brokerage, select the stocks, enter the amount you want to gift, and voila! You’re officially a stock gifter.
STEP 5: TEACH, TEACH, TEACH!
Now, this part is crucial. Don’t just drop the mic and walk away. Educate those KidVestors! Explain what stocks are, how the market works, and why it’s essential to think long-term. Bonus points for making it fun – maybe a game to explain the concepts? Financial literacy doesn't have to be boring!
Matter of fact, you can start their financial journey by enrolling them in our stock market curriculum available via our app here.
Remember, this isn’t just about giving a gift. It’s about setting kids up for financial success and teaching them valuable life skills. How cool is that?
So, there you have it – a crash course in gifting stocks to kids. It’s a really cool way to spark an interest in finance, foster responsibility, and who knows, maybe kickstart someone’s investing journey. Give yourself a pat on the back for making a difference in someone's financial future!
FINANCIAL EDUCATION & INVESTING FOR KIDS AND TEENS
FREE LIVE CLASS FOR PARENTS
Enroll your student in our financial literacy course and app 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.