Give a child a gift of stock
Do you have children? How about a nephew or niece? Are you a child? Hopefully you answered yes to one of those questions.
Now ask yourself, how many toys or clothes does that kid have? Probably a ton. For his next birthday, give the kid a share of stock in the company of their interest (publicly traded). Sharebuilder has a great offer right now that will give you $50 after opening up a custodial account. A Custodial Account is essentially an investment account created for the benefit of the minor and owned by that minor. A custodian (parent, uncle, aunt, etc) is there to manage the account until the minor becomes a certain age, which depends on State of Residence. Click the link in the previous sentences to read more about custodial accounts. This offer is good until 12/31/14. The $50 will go into the account after the custodian makes a trade on the account.
We bought the stock at $73. Today it's at $84 per share and now have another $50 from the ShareBuilder promotion. It's cool to give the child something like this and explain to them that they are part owner in one of their favorite company's. If they don't appreciate the gift now, they definitely will when they turn an adult, Patience is a virtue.
So, what is stock and how do you pick one? Good question...you have thousands to choose from. Stock is an ownership share in a corporation. These stocks are traded on exchanges all over the world. By owning stock in a corporation, you are a shareholder of that company. There are many different methods and strategies, but keep it simple if you are just beginning. I would suggest picking a company that you are familiar with or the child is into. You could choose Apple (AAPL), John Deere (DE), Coca-Cola (KO), Pepsi (PEP), Google (GOOG), Marvel (MRVL).
Note: I did not get paid by Sharebuilder for this article nor do I own any of the stocks listed above.
DK
Now ask yourself, how many toys or clothes does that kid have? Probably a ton. For his next birthday, give the kid a share of stock in the company of their interest (publicly traded). Sharebuilder has a great offer right now that will give you $50 after opening up a custodial account. A Custodial Account is essentially an investment account created for the benefit of the minor and owned by that minor. A custodian (parent, uncle, aunt, etc) is there to manage the account until the minor becomes a certain age, which depends on State of Residence. Click the link in the previous sentences to read more about custodial accounts. This offer is good until 12/31/14. The $50 will go into the account after the custodian makes a trade on the account.
Gift of Stock
Me and my wife just opened an account for our nephew this last Christmas. We bought him Walt Disney stock (DIS) and made him a stock certificate sheet for him to keep (see image below). We plan to do it for all the ones in our families.We bought the stock at $73. Today it's at $84 per share and now have another $50 from the ShareBuilder promotion. It's cool to give the child something like this and explain to them that they are part owner in one of their favorite company's. If they don't appreciate the gift now, they definitely will when they turn an adult, Patience is a virtue.
Stock Advice
Remember, stocks are risky and stock appreciation is not guaranteed. I am in no way an expert, so consult a financial advisor when deciding on a stock. We chose a strong company (in our opinion) and are thinking with a long term plan. We don't plan on doing day-trading, but a consistent investing pattern as he grows older.So, what is stock and how do you pick one? Good question...you have thousands to choose from. Stock is an ownership share in a corporation. These stocks are traded on exchanges all over the world. By owning stock in a corporation, you are a shareholder of that company. There are many different methods and strategies, but keep it simple if you are just beginning. I would suggest picking a company that you are familiar with or the child is into. You could choose Apple (AAPL), John Deere (DE), Coca-Cola (KO), Pepsi (PEP), Google (GOOG), Marvel (MRVL).
Note: I did not get paid by Sharebuilder for this article nor do I own any of the stocks listed above.
DK
