View Full Version : tips on giving stocks as gifts


uriahsmommy
Hello,
I am interested in giving my small children stocks for Christmas. I'd like to invest up to $50 per child in a company that my children would recognize. I also have family members who would like to give my children stocks. What is the best way to go about this? I'd like to keep fees to an absolute minimum, since I have so little to invest anyway. Any recommendations on companies to buy or where to turn for help? Thank you

savingadvice
I'm not sure if this is what your were thinking about, but it may help - DRIPS (http://www.savingadvice.com/forums/showthread.php?t=2060), but for the low amount initially you may want to consider a savings bond of some type.

eburt
A great way to invest with little cash is through ShareBuilder (http://www.sharebuilder.com/). The commission is a low $4 per trade, and there's no investment or account minimum, or inactivity fee.

I don't what age your kids are, but if they're a little older, ShareBuilder also offers gift certificates (https://sharebuilder.secureorderzone.com/browse/default.aspx?ID=70ea6120-23e1-4e99-b188-42240cfb10cf) so they can choose their own stock to invest in.

See "A Kid-Friendly Introduction to Stocks (http://www.kiplinger.com/personalfinance/basics/managing/kids/faqs/pfaq_stocks.htm)" for more information.

Dingobiscuit
With an amount of $50 or less, commission fees will kill you. Even a $4 fee on a $50 investment is 8% of your initial investment. Buy them a $100 EE US savings bond or a $50 I bond for the $50. Neither have fees, and neither will ever lose money, and they will continue to gain interest for 30 years.