Buying Stocks (or ETFs) for Kids

Is there a reasonable way to purchase a few shares of a stock (or ETF) as a present for a child? I imagine treasury bonds would be easier, but I think stocks would be more exciting. For example, my goddaughter's confirmation is coming up. Could I somehow get her a single share of SPY?

Ideally, I'd like to minimize the parents' involvement. Thinking specifically of my goddaughter, her parents aren't exactly the financially saavy type. I'd like this to be something that they don't have to put any effort in to.

Thanks in advance, Bill

Reply to
Bill Woessner
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You can open a UGMA account in her name and buy a share of SPY, of course the commission will be a larger percent than makes sense. And most brokers will charge an annual fee on such a small account. So you'd want to find one that will accommodate you. You may be better off buying it in your account and asking for a stock certificate, I think they can still do that. JOE

Reply to
joetaxpayer

Sure. Do you have a broker? Go through your own broker. Disney stocks are esp. popular for kids. Get the stock certificate and have it framed.

Reply to
PeterL

Unfortunately, no. I do all my investing via mutual funds so I don't have a brokerage account. Sounds like that could make this a pretty difficult endeavour.

--Bill

Reply to
Bill Woessner

Bill I realize you want to help her understand investments. That's nice, and hopefully the other posters have helped with that.

Here's a different idea. Hire her to do some work around your house (something appropriate for her age.) Then pay her $20. The lesson is that if she works hard and does good work, she gets money.

Teach her that and everything else will come.

-HW "Skip" Weldon Columbia, SC

Reply to
HW "Skip" Weldon

Doesn't have to be:

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Okay, they charge a lot of money for their service ($39 transfer fee and depending on the stock, they seem to sometimes require you to buy a frame from them, ie. for a share of Apple, I couldn't get the thing to not include a $64 frame. For a share of BUD, though, it would allow me to choose a paper frame for free). But it is easy and looks like they make them pretty nice.

There are other services, too, but that was the easiest one to find.

Reply to
BreadWithSpam

Well, even though you don't have an account, call up either Schwab or Fidelity if there is an office in your city, and ask them if they'd do it for what you want.

Reply to
PeterL

Nice idea. If you are giving her a single share of stock, or just a few shares in one company, consider opening a dividend reinvestment plan (DRIP). That way, in future years she could add any number shares to it from time to time on her own with a minimum of effort and without paying any brokerage costs.

Reply to
Don

one option would be

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there is no minimum account fees... and if your just buying one stock it'll cost $4. and they allow partial shares which can be a nice feature.

Just my 2 cents, Shhhh

Reply to
Shhhh

A few years ago my son got stock certificates as gifts: one share of one company and four shares of another. Every quarter, we get two dividend checks for measly amounts (one of them is about 8 cents). I had not bothered cashing them and then I get a notice from one of the companies that if I don't cash them the stock will be forfeited, or something to that extent. They paid me for all the back dividend checks that I didn't cash and now I make sure to cash all the checks. There is always an application form each quarter for some dividend reinvestment plan but I think it cost a few bucks to set up and anyhow was not worth the trouble.

Now I'm wondering about the opposite situation posed by your question. How can I eventually sell these things? I have actual certificates for one and four shares, and to complicate things they are in my son's name, or maybe in my name as custodian, I forget.

All in all, more trouble than it was worth, in my opinion.

Reply to
pixel_a_ted

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