Give the Gift of Stock this Christmas

Last week on the blog we shared some fantastic, financially-related Christmas gift ideas for children. One of the ideas was to open a Roth IRA for your child. Good idea for an older child with a bit of income coming in. But not so good for younger kids, or kids without income.

The ShareBuilder Gift of StockCapital One 360, who owns the online stock broker ShareBuilder has put together a neat little package that might be a better solution to teach your younger AND older children about investing in stocks. It’s called Give the Gift of Stock, and it includes: a $50 ShareBuilder gift card, 5 automatic investment plan credits, and a 5 part video series on how to buy the right stocks for your portfolio from the guys at The Motley Fool.

ShareBuilder has suggested letting your child help you pick stocks based on the instructional video, and based on the companies who own the toys that they want for Christmas (e.g. Mattel, etc.). As you know I’m a fan and occasional user of ShareBuilder. They are my online stock broker of choice when it comes to taxable investing (i.e. outside of the 401(k), Roth IRA, etc.). I don’t do much taxable investing though. But, they sent over a The Gift of Stock kit for me, so I thought I would put it to use. I’ll use the kit to open up a little custodial brokerage account for my daughter. In it, I’m going to invest in:

  • LeapFrog Enterprises Inc (LF) – My daughter loves The Letter Factory.
  • The Walt Disney Co (DIS) – Disney owns the Little Einstein Company, another video favorite.
  • Mattel Inc (MAT) – My daughter is rarely seen without a Little People figurine in her hands. They are made by Fisher-Price, who is owned by Mattel.

This little exercise will be just for fun and future education. One day I’ll show her the account and tell her about the companies that make the toys she loved. I don’t suggest you invest a bunch of money and pick stocks based on the toys your kids play with. Most people should just stick to boring old index funds and mutual funds within tax-advantaged retirement accounts. I do. But if you have extra funds lying around and want to teach your kids a lesson about investing. Nothing would do it quite like showing them how to buy stocks in the companies that make toys they love.

The Give the Gift of Stock Kit is available for purchase at Sharebuilder.com. Orders placed online by December 12, 2010 will arrive before December 25. All online orders using ground shipping will be sent for free. The Gift of Stock, valued at $125, is selling for $45.

Don’t need to give a gift? If you simply want to open a brokerage account with ShareBuilder, they will give you a $50 bonus to get started. Open a ShareBuilder account today and have a no-fee, no-minimum, trusted place to invest your money.



Last Edited: February 22, 2013 @ 2:41 pm
About Philip Taylor

Philip Taylor, aka "PT", is a husband and father of two. He created PT Money back in 2007 to share his thoughts on money and to meet others passionate about managing their finances. All the content on this blog is original, and created or edited by PT. Read more about Philip Taylor, and be sure to connect with him on Twitter, Facebook, or view the Philip Taylor+ Google profile.

Comments

  1. My grandfather actually gave me some microsoft stock when I was a kid, and by the time I graduated high school and ended up selling it the value had nearly tripled – good thing to because since then it hasn’t really moved. Still a great gift assuming you go with a company that’s fairly stable, and possibly something that pays a dividend (cough GE cough). Regardless it’s a great learning experience and how I was first introduced to the market and finances.

  2. Briana Ford says:

    Sounds like a great gift; wish they had something similar for me growing up.

  3. Just an FYI everyone… After I entered the promo code from the card it didn’t immediately tell me that I had fifty bucks to trade with. The 50 bucks don’t hit the account until 4-6 weeks. After you sign up, you will get an email telling you as such.

  4. This sounds great! Thanks for sharing.

    Also just wanted to thank you again about the American Express card… it thrills me to win something like that! I just sent over my responding email… so be sure to look for that. =)

  5. Thanks, Tarissa. I did get your email. The card should be on it’s way soon.

  6. Actually, while the email said it would take 4 weeks, I actually got the bonus in 3 days. I invested the $50 in LF.