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Finance & Stock Groups Forum Index » Financial Planning » Buying Stocks (or ETFs) for Kids
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| Bill Woessner |
 Posted: Fri Jul 06, 2007 5:28 am |
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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 |
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| joetaxpayer |
| Posted: Fri Jul 06, 2007 5:28 am |
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Bill Woessner wrote:
Quote: 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.
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 |
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| PeterL |
| Posted: Fri Jul 06, 2007 1:00 pm |
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On Jul 5, 8:07 pm, Bill Woessner <woess...@gmail.com> wrote:
Quote: 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
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. |
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| Bill Woessner |
| Posted: Fri Jul 06, 2007 4:26 pm |
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On Jul 6, 5:00 am, PeterL <po.n...@gmail.com> wrote:
Quote: 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 |
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| HW \"Skip\" Weldon |
| Posted: Fri Jul 06, 2007 4:45 pm |
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On Thu, 5 Jul 2007 22:07:15 -0500, Bill Woessner <woessner@gmail.com>
wrote:
Quote: 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.
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 |
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| Guest |
| Posted: Fri Jul 06, 2007 6:34 pm |
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Bill Woessner <woessner@gmail.com> writes:
Quote: On Jul 6, 5:00 am, PeterL <po.n...@gmail.com> wrote:
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.
Doesn't have to be:
http://www.oneshare.com/
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.
--
Plain Bread alone for e-mail, thanks. The rest gets trashed.
No HTML in E-Mail! -- http://www.expita.com/nomime.html
Are you posting responses that are easy for others to follow?
http://www.greenend.org.uk/rjk/2000/06/14/quoting |
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| PeterL |
| Posted: Fri Jul 06, 2007 8:19 pm |
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On Jul 6, 5:26 am, Bill Woessner <woess...@gmail.com> wrote:
Quote: On Jul 6, 5:00 am, PeterL <po.n...@gmail.com> wrote:
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
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. |
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| Don |
| Posted: Fri Jul 06, 2007 8:29 pm |
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"Bill Woessner" <woessner@gmail.com> wrote in message
news:1183691211.332139.317940@m36g2000hse.googlegroups.com...
Quote: 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?
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. |
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| Shhhh |
| Posted: Sat Jul 07, 2007 2:33 pm |
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On Jul 5, 10:07 pm, Bill Woessner <woess...@gmail.com> wrote:
Quote: 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
one option would be www.sharebuilder.com 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 |
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| pixel_a_ted |
| Posted: Sat Jul 14, 2007 3:51 am |
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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. |
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