“If you have children, you’re blessed with the opportunity of granting them the greatest gift any investor could want: time. Let’s take a look at some companies whose shares would make a great gift for your kids to not only help them learn about investing, but also get them excited about money and business in general.”
Prepared by Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money!
[This synopsis of edited excerpts* (766 words) from the original article (1676 words) by Damian Davila provides you with a 54% FASTER – and EASIER – read. Please note: This complete paragraph, and a link back to the original article, must be included in any article re-posting to avoid copyright infringement.]
1. Snap Inc. (NYSE: SNAP)
…Since it has been estimated that 60% of Snapchat users are under age 25 and nearly one in four hasn’t finished high school, there’s a very good chance that your children use this popular social media app.
Leverage their interest in the app to keep them focused on tracking a stock price and keeping abreast of the effects of company announcements, such as Snap’s Spectacles, on the valuation of a publicly-traded company. Bonus: You could use Snapchat to send them their monthly allowance, keep a digital record of when you made that money available, and check how long it lasts them…
2. The Walt Disney Co. (NYSE: DIS)
“Do you want to buy a stock share? Come on let’s go and trade!” If you started reading that in Princess Anna’s voice, then you’re a Disney parent and your kiddos spend a lot of time singing along to similar tunes. Keeping interested in this stock is easy because your kids will read about movie productions, toy developments, theme park construction, and other family entertainment projects.
Disney is a great stock to hold onto for the long run, which is a maxim that you want to instill in any young investor…
3. Amazon.com, Inc. (Nasdaq: AMZN)
Parcel-delivering drones, robots that work in warehouses, and voice-activated speakers that can control other home devices. It’ll never be dull moment chatting with your kid about recent news from the Seattle-based e-commerce giant.
If you have the budget, Amazon.com is one of those expensive stocks that are totally worth it. Just when you think that the stock can’t hit new heights, an uptick during the early November and December holiday season gives the stock price another boost. Time your gift well before the holiday season and provide immediate gratification to your kids from a stock price bump.
4. Foot Locker, Inc. (NYSE: FL)
On the other hand, here’s one stock to develop in your children an appreciation for delayed gratification. If your kid is a sneakerhead or sports jock, they’ll include a new pair of athletic shoes in their Christmas list…
Give your child the option of the shoes or one share of Foot Locker, Inc. (Or pick another company that better matches the price of the shoes that they want, including Nike Inc. (NYSE: NKE) or Skechers USA Inc. (NYSE: SKX). When your child chooses the stock over the shoes, they’ll realize that they’ll have more available after a one-year period. If they’re still unconvinced, ask them to try selling a pair of old, smelly shoes after one year of (ab)use from a tween.
Setting a strong foundation for delayed gratification will boost your child’s ability to save for retirement and build an emergency fund…
5. Tesla Inc. (Nasdaq: TSLA)
The concept of saving for retirement is completely foreign to most individuals under age 18, maybe even for some under age 25. Getting somebody to plan about 40 to 60 years ahead is a difficult task. One way to get your kid thinking about the future with a fun and optimistic tone is to gift them stock from Tesla, because this company is in the business of electric cars, energy storage batteries, and solar panels.
Plus, Tesla’s CEO Elon Musk is so cool as to inspire the way actor Robert Downey Jr. plays Tony Stark in all Marvel films. By following the decisions of a cool and smart CEO, your child could gain further interest in business and entrepreneurship.
How custodial Roth IRAs can help with investing education
If your kid is under age 18 and makes some money on their own, such as through a hobby or during the summer, consider opening a custodial Roth IRA for them. This is a great way to educate your child about investing and providing a “sandbox” in which to make real-life decisions with investments…
Many financial institutions require an account minimum of $100 to open a custodial Roth IRA. You could start with some stocks from this list or other stocks that your kid is interested in and eventually move on to index funds and mutual funds. To minimize fees, just keep post-contribution transactions at a minimum.
Gifting your child stocks paired with several years of retirement savings could be one of the best gifts you could ever give them for a brighter financial future.