How To Financially Invest In Your Child While They're Young
Ever wondered what you could buy for your children while they’re young that could last them into adulthood? How many times have you bought toys that they’ve outgrown or forgotten about as soon as the new toy arrives? Have you ever thought about investing? Yes investing! Would you consider investing in the companies that produce the things they love the most? Why not have them own a share in Disney or Apple or McDonalds. Most people are not aware that you can open an investment account for children before they even turn 1 year old. Yep that’s right. You can start investing for your child as long as they have a social security number. One of the best ways to do so is through Stockpile.
Stockpile is an investment platform where you can invest for yourself or others. I love that with Stockpile you can “Give the gift of Stock instead of Stuff”. Here’s how it works.
You can open an account for anyone ages 0 and up. They can check their accounts at any time and even place trades once they learn how to with the adults approval. The best thing about the platform is the fact that you can make fractional investments in stocks that you feel you cannot afford. A perfect example is the Apple stocks I purchased for my nephews in December of 2018. I wanted to buy each of them something for Christmas that was meaningful and something they could benefit from in the future. I was tired of buying them toys they threw away or grew out of. I decided to invest in Apple since they loved iPhone's so much.
In December 2018, Apple stocks were just around $148 per share. This obviously fluctuates per day. On Christmas day I opened each of their accounts. After opening the accounts, I invested $75 for each child. Stockpile charges $0.99 per trade so in the end, $74 was invested into the Apple stock. That was at least half the amount of a share, so each nephew now owned .5% of an apple stock. It does not seem like much but exactly a year later, Apple went up to about $329 per share, so their stock went from $74 to over $160. Imagine if they had 10 shares in Apple. They would have earned well over $1000 by doing nothing.
This was a great way to invest in them because their gift made money. More than it would make sitting in a bank account. Since then for every birthday and holiday, I’ve been buying them stocks instead of toys or clothes. They already get enough of those things from friends and family. My hope is that once they get old enough they will help me choose the stocks to purchase for them and assist with trading themselves. Once they turn 18 and they’re able to withdraw from the account, they can utilize the money for college, invest more or even travel the world. I also think it's kind of cool for them to tell their friends they own shares in some of these large corporations.
This is an image of the growth their stock made with Stockpile.
Now that you have the info, go get started! If you need any assistance reach out to me @cinstravel for a private consultation on how to get started.