While there are a few different ways to give stock out there, the one we finally settled on was Stockpile. In order to set up this same sort of potential situation for our nephew, I started looking into ways to give the gift of stock. Eventually, they would be able to use the funds in the account for a first car, college, or maybe just keep it going as their first step towards achieving FI for themselves (a parent can dream, right?). Even before I let them spend it at an older age, it would be neat to show them statements from their own investment account when explaining investing and how the stock market works. While I would never expect our family to simply take cash given to their children and spend it on themselves, we were luckily able to come up with a much better option! I was thinking about what I might do with cash gifts for my future children and determined that I would probably open up a custodial investment account in their name and buy index funds that could grow for years before they might ever have a use for it. Will they save it in a bank account they open for the child? Maybe invest it for their future college fund? Possibly spend it because no one would be the wiser? We were hoping to find something more meaningful.Ĭash came to mind, but also felt like a weird option for a 1-year-old, but that will honestly depend on what the parents do with it. Plus, it’s hard to make a lasting impression with something that will be added to a growing collection of toys and may hardly ever be played with. His parents were insistent that they already had plenty of those anyway and I imagine this is a common problem for parents of young children. While we weren’t able to make the trip back home, we did want to send a gift but didn’t want to go with the standard clothes and toys option. Not too long ago, Becky and I were invited to our nephew’s first birthday party back in Chicago.
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