Want to give a child a holiday gift that keeps on giving? Here’s an idea: Stock! Most kids might not be begging for stock gifts under the tree but what if they could own part of the company of one of their favorite things in the world? Not only is it relatable, it’s like an easy-to-digest economics lesson - By following how a company is doing over time - young people learn about savings and investing.
And now you can buy stock or fractions of stock without going to a stockbroker. “Stockpile” offers e-gift cards online and plastic gift cards at outlets like Kmart, Office Depot and Toys-R-Us. They come in hundreds of choices and cost the face value of the gift you want to give - anywhere from $1 to $1,000 plus a nominal fee. And for kid appeal, you can even buy stock directly from companies like Disney and Harley Davidson.
Children can own stock, but until they’re 18 an adult has to responsible for opening and managing a custodial account for them. But they’ll be able to log in with their own credentials to see how their holdings are doing. And even trade with the adult’s approval.
Of course, you can also give old fashion paper stocks as a gift, but Consumer Reports says be aware you’ll need a broker to sell the shares which could result in additional fees.
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