If you are in search of a gift a little more than Charlotte the Sloth Squish mallow, then you should present your child with a publicly traded stock, especially if they are young. A stock in Nike, Apple, Tesla, Amazon, Disney or Coca Cola will literally help you in arranging some great finance for the future of your growing kid. Do not worry about picking the best stock or the best time in the market; the returns for your child till they reach maturity will be phenomenal. The simple reason for buying stocks for kids is to expose them to the idea of investing during their young age.
Merely talking about investment and stocks with young boys and girls will help them in building their knowhow, interest and confidence. You can also give them hands-on experience with stocks by opening a custodial account at Loved. While not every broker offers this facility, Loved gives you the opportunity to make your child own a share of a business and learn how to multiply it right from their young age, with your help. Once the child reaches the age of 18, they can become the owner of the account.
It is great ways to unleash your budding Buffett’s potential and show them what it is like to own and manage finance and investment. The tips to buying stocks for kids are given below:
- Discuss about building a portfolio
When you give your child his first smartphone, ask him to dig about a company he is interested in. This will give you the opportunity to discuss investment. Simply open a custodial account and buy and hold the shares in that account. You can also allow them to pick an investment so that they are engaged to learn more. Every time you check the portfolio, ask your child to join you and see the performance of their stocks.
- Set up a trading account to train them
If you want to give your young child an investment account, then a custodial account is the right option. It legally belongs to your child but as an adult you are the custodian to manage the minor’s asset in their best interest till they reach maturity. Once the child is mature, you can give the keys of the account to them to handle investments.
- Buy stocks for kids without burning a hole in your pocket
It is not important that you invest your whole earnings in the stocks. You can start with a very small amount which will eventually yield high ROI till your child reaches maturity. Go for fractional shares with whatever money you plan to invest. You can keep adding and buying stocks as and when you have funds.
Loved is a kid-friendly investment platform to buy stocks for kids in a custodial account and help them the basics of investment with a real-world trading experience. It is something your child can avail for their future studies or business. So, go ahead and make an investment plan now!