Buying Stocks (or ETFs) for Kids

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

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.

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

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

Doesn't have to be:

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

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.

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.

one option would be

Just my 2 cents, 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.