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TL:DR; Stocks are an effective way to teach kids about investing in a way they'll understand and enjoy. Buy a kid-friendly stock like Disney, Nike, or Apple, and explain how the stock market works for kids through a live example.
Buying stocks for kids early in life can introduce them to important personal finance concepts like compound interest, investing, and the stock market.
What stocks do kids like? What is the best stock to buy for a child?
How do I buy stocks for my kids?
Read on to find out everything you need to buy the first stock for your kids.
What makes stocks a good place to start financial education?
Investing for kids in the stock market is one of the best ways to build generational wealth for your kids.
The earlier you start, the more time you have for compound interest to work its magic.
But that's not all it's about.
Introducing kids to the stock market and investing will prepare them to invest themselves when they are adults.
If you want your kids to be financially successful, you need to teach them how to invest money wisely.
Teaching financial literacy to kids at a young age also has a compounding effect.
Introducing kids to the stock market and investing will prepare them to invest themselves when they are adults. It will also help them learn the benefits of long-term investing.
Kids who invest will want to make their money and invest even more.
Learning through actions and live examples is easiest, especially with complex concepts.
Buying a stock for your kids and grandkids is an excellent way to teach through example. It can get kids interested in finance and investing.
The best time to buy stocks for kids is when they're still young. They're going to learn from the experience and it will be fun for them, too!
You can buy the first stock with funds from financial gifts, the child's allowance, or from your own money as a gift for the kid.
Investing for kids in the stock market is one of the best ways to build generational wealth for your kids.
Use the opportunity of buying your kids their first stock to teach valuable lessons in personal finance.
This could be the first step in creating generational wealth for your family.
Explain what it means to own a stock in the company.
When explaining concepts in money and finance to children, it's best to use plain English and terms from their world.
Show your kids their investment account that holds their stock. If you can, add a name to the account with your child's name. Show them their name on the account.
Tell children that owning a stock means they own part of the company. They are now a part of a large group of people who own the company together. As long as the company does well, their stocks will also do well.
Tell children that owning a stock means they own part of the company.
Explain that owning shares in Disney or Apple means you own part of those companies. If they make money, so do you.
Encourage them to think how the company makes money.
Children who understand these concepts are more likely to take an active interest in their money as adults.
Encourage them to research other companies they know and love.
Find a company that the child knows from daily life to spark additional enthusiasm.
Children who understand these concepts are more likely to take an active interest in their money as adults.
When buying stocks for kids, consider their age, maturity level, and personal interests.
An eight-year-old may not understand concepts as well as an older child or teenager.
Stocks for teens are a great way to get teens engaged in the financial future.
Find the best stock to inspire your child from our list of kid-friendly stocks.
Here is the complete list of stocks that kids can relate to and get excited about owning.
Try to buy a stock that is age appropriate. Think about a company that your child knows from day to day life.
Buying a stock for your kids and grandkids is an excellent way to teach through example.
Buying a stock that your kids find interesting will motivate them to learn more about investing.
Traded on the NYSE, The Walt Disney Company is a business that every kid in the world knows and most love.
Disney makes money by producing family favorite movies and TV shows, operating theme parks, selling related products like toys and clothing.
Disney is a great place to start your kids’ stock portfolio because it is so well-known and loved by the whole family. The company that has been around for almost 100 years, proving itself over time.
If your kids are old enough to understand how businesses work, Disney may be an excellent choice for their first stock purchase.
Learn more about how to buy Disney stock for kids and as gifts.
Are your kids chocoholics? Help them become part owners in The Hershey Company, one of the biggest chocolate manufacturers in the world.
Hershey's makes money by making and selling classic Hershey Bars, Kisses, Reese's, Kit-Kats and many other chocolates and non-chocolate treats.
Next time you make s'mores by the fire, tell your kid's the story of how they first got invested in the stock market.
Sneakerheads and young athletes can be pointed towards investing by owning their first stock of Nike.
Nike is one of the most known brands for sports apparel, equipment, sneaker and anything else sports related.
Buying a Nike stock is great for active kids who want to feel as if they’re part of the sports world.
The company has been around for years and is always innovating. Next time you play sports with your kids, tell them about their new Nike stock and how Nike makes money.
Happy meal prizes may not have fractional shares of the McDonald's Corporation, but you can buy a slice of the stock yourself for your kids.
McDonald's revenue comes from rent, royalties and sales in the company operated franchisee restaurants.
With McDonald's over 13,000 branches in the US alone and over 38,000 in the world, kids get to see their new company in action wherever they go.
Gearhead kids with a passion for anything on four wheels will love owning a piece of the General Motors Company.
GM deisgns, builds and sells trucks, cars and automobile parts, with popular brands like Chevrolet, Buick, GMC and Cadillac.
Kids can own toy and model cars as well as a part of the business that makes the real cars, starting from a very young age. Later they can use their stocks to make a down payment on their very own first car.
Chances are your kids have toys made by the world's second largest toy maker, Mattel, so explaining to your kids what this business does will be easy.
Mattel Inc designs, makes and sells toys and other consumer products.
Their most famous toy brands include Barbie, Hot Wheels, and others.
In addition to their own brands, Mattel makes action figures and other toys from licensed partner brands.
If your kid loves playing video games or collecting Pokemon, go for a stock of Nintendo.
Nintendo makes money by developing and manufacturing video game consoles & systems and trading cards.
Parents who grew up playing video games themselves can bond with their kids playing video games together, and buying stock in the company that brought them hours of joy.
One of the largest technology businesses in the world with a brand that is recognizable by all, children and adults alike.
Apple makes money by designing and selling smartphones, computers, tablets, other accessories, and additional related services.
Apple makes a good choice for older kids and teens that can start learning more about stocks and investing. Older kids may have phones or computers of their own, making it easier to relate to the company stock.
Kids that are attached to their headphones or aspire to host their own podcast someday can learn about investing by owning stock in Spotify.
Spotify makes money from user subscriptions and ad sales on it's music & podcast streaming services.
Spotify has over 400 million active users and is loved globally.
One reason Spotify is one of the best kid-friendly stocks is that every kid can use Spotify and easily understand how the business makes money or why customers love using it.
One of the best kid-friendly stocks for movie buffs and binge watchers.
Netflix revolutionized how we watch movies and TV, moving from physical DVD rentals in the late 90s to an online streaming service in 2007.
Netflix makes money by collecting subscription fees for it's streaming service and more recently from ads on the streaming service. They distribute films and TV series through distribution deals and their own productions.
The company has over 200 million paid subscribers worldwide.
Kids who invest in Netflix can learn about how important innovation is for companies from the company's rivalry with Blockbuster in the early 2000's.
Why give just one stock, when you can give a package deal of multiple stocks combined into one?
When it comes to smart investing for kids, Index Funds are a great way to dive into the world of finance.
These funds are all about spreading investments across many companies, making them a safer choice for long-term growth.
A single stock may crash and lose all its value, but it's harder for an index to crash completely.
Because Index Funds and Mutual Funds spread money across many different investments, they are less risky over a long time.
This makes them a safe choice for saving money for kids' futures.
Here are four fantastic options that are perfect for young investors:
The VTSMX mutual fund is a one-stop-shop for U.S. stock market exposure.
It covers a broad range of U.S. stocks of all sizes, ideal for kids to get a taste of the entire market in one go.
With no management fees, the FZROX fund is a wallet-friendly option for families.
It aims to provide returns that represent the total U.S. stock market, making it both comprehensive and cost-effective.
Perfect for getting to know some of the biggest companies in the U.S., this iShares ETF tracks the S&P 500 Index.
It's a straightforward and practical way for kids to invest in top U.S. companies.
As one of the most popular and traded ETFs, SPY makes investing simple and accessible.
It mirrors the S&P 500 Index, offering a slice of the biggest U.S. companies.
It’s a great tool for kids to start learning about the stock market.
These Index Funds are not just investments; they're learning tools.
They teach kids about diversification — not putting all their eggs in one basket.
By investing in these funds, kids get to own parts of many different companies,
reducing the risk and providing a smoother investment journey.
Plus, they're an excellent way for kids to start recognizing big company names and understanding their role in the economy.
It's a practical, hands-on financial lesson packaged into a smart investment choice.
Kids can invest in stocks, but they may need an adult's help to set up an investment account.
In order to buy stocks, you need to have an investment account with a brokerage that allows you to buy and sell stocks (or other investments).
Children can't open an investment account on their own. Instead, they will need to have one set up with a custodian, an adult that can help manage their account until they reach the age of majority (adulthood).
Children can't open an investment account on their own. Instead, they will need to have one set up with a custodian.
This custodian can be a parent, grandparent, guardian, or other adult in the child's life.
Through an investment account, parents and other adults can purchase stocks for their kids.
Some brokerages have investment accounts that are made for the kids to make the investments on their own, with adult supervision.
One other way kids can invest in stocks is through an allowance and chores app. Some of these apps allow kids to buy stocks, with approval of each investment by a parent.
Buying stocks for your kids or grandkids starts with opening up an investment account for kids.
There are a few different types of accounts, and each has their own pros and cons. Choosing the right account can help reach you and your kid reach your financial goals.
The popular account types include 529 plans, UTMA accounts, Youth Investment Accounts, and Custodial Roth IRA.
Buying stocks for your kids as a parent can be easy, but may be challenging otherwise. If you are not the parent, consider giving a monetary gift for the child to the parents through Greatest Gift and suggest using the gift funds to purchase stocks for the kid.
As the parent, set up an investment account for your kid with your preferred financial institution. To make sure your child actually owns the stock and the account, set up the account as a Custodial Account.
This provides additional tax benefits and savings.
Next, fund the account. Finally, use the funding in the account to purchase a kid-friendly stock.
Buying kids stock helps explain the stock market for kids.
You can also buy exchange traded funds (ETFs) if you don't want to choose one specific stock. A mutual fund or exchange traded fund offers less risk. They allow you to own multiple stocks through one purchase.
Good stocks for kids are those that they can easily relate to and understand.
Think about companies that are part of their daily lives like Disney, Apple, or Nike.
These stocks not only allow kids to connect with their investments but also provide a learning opportunity about how businesses operate.
Choosing well-known, stable companies helps ensure a safer investment for long-term savings.
A 12-year-old can invest in stocks through a custodial account, which an adult sets up and manages until the child reaches adulthood.
This type of account allows the child to own stocks while the adult oversees the transactions.
It’s a great way for kids to learn about investing, with the guidance of an adult.
Brokerages often offer youth-friendly interfaces, making it easier for kids to track and understand their investments.
Kids can start investing by setting up a custodial investment account with the help of an adult.
This first step is crucial for teaching them the basics of the stock market.
Starting with familiar, kid-friendly stocks or diversified index funds is a good way to make the process engaging and educational.
Encouraging regular discussions about their investments can also help spark their interest in finance and investing from a young age.
Buying stock for your kids or grandchildren is just the first step in a long journey of financial independence.
Continue developing your kid's understanding of the stock market after that first stock purchase to encourage more investments.
If your child is interested in continuing to learn about the stock market, you can help them read financial news stories and explain what they mean.
Kid-friendly stocks are an effective way to teach kids about investing in a way they'll understand and enjoy.
Teach them how to research companies and find valuable information on their own.
Set up a youth investment account in which they can invest money on their own (with your supervision).
Instead of picking out one stock at a time, introduce your kids to index funds. Show them how index funds differ from individual stock picking, diversifying their risk in the process.
Help your kids grow their investment portfolio. Invest financial gifts for birthdays and holidays with Greatest Gift's financial gifting platform for kids.
Kid-friendly stocks are an effective way to teach kids about investing in a way they'll understand and enjoy.
Make your child a stock owner at a young age. Get them used to participating in the stock market.
Start early.
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