Consumer Reports: Give The Gift Of Stock
PITTSBURGH (KDKA) -- Want to give a child a holiday gift that keeps on giving? Here's an idea: Stock. You used to have to go to a broker - but now, buying shares is as easy as buying a gift card. And for young people, stock gifts can offer life long benefits.
Nick Irons' nephew Jacob loves Six Flags Great Adventure so two years ago he bought him stock for Christmas.
"When I told him this is worth x number of dollars and it's going to grow every year, he was pretty happy," Irons said.
Most kids might not be begging for stock gifts under the tree but what if they could own part of the company of one of their favorite things in the world?
"Not only is it relatable, it's like an easy-to-digest economics lesson - By following how a company is doing over time - young people learn about savings and investing," said Consumer Reports Money Editor Tobie Stanger said.
And now you can buy stock or fractions of stock without going to a stockbroker. "Stockpile" offers e-gift cards online and plastic gift cards at outlets like Kmart, Office Depot and Toys-R-Us.
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They come in hundreds of choices and cost the face value of the gift you want to give - anywhere from 1-dollar to 1-thousand dollars. Plus a nominal fee.
And for kid appeal, you can even buy stock directly from companies like Disney and Harley Davidson.
"Children can own stock, but until they're 18 an adult has to responsible for opening and managing a custodial account for them," Stanger said.
But they'll be able to log in with their own credentials to see how their holdings are doing. And even trade with the adult's approval.
Jacob said he has learned a lot.
"You can use that money in the stock market to make more money," Irons said.
You can also give old fashion paper stocks as a gift, but Consumer Reports says be aware you'll need a broker to sell the shares which could result in additional fees.
