Stocks for Kids
I’ve been wondering when I should introduce my son to stocks. He’s been asking me what I’m doing when I’m researching special situation stocks. He really thinks its neat that I have a website and he loves looking at the numbers. I’ve explained to him how I’m working to find ways to make money. I think he understands the basic concept of money now, because he has been collecting change to save up for some Hot Wheels toy he saw on TV. However, I don’t think he really knows what a business is yet.
Given that he’s not yet in elementary school, I have plenty of time to figure this out. I think when the time comes to introduce him to stocks, I think it would be best to get him a physical stock certificate to make it more real and tangible. A dividend paying stock would also probably be preferable because the quarterly dividend checks would likely keep my son more interested in the stock. Finally, I think the stock certificate should be attractive looking so I can hang it up in his room.
At this moment, a Disney stock certificate sounds like a good choice for my son’s first stock certificate. It’s an attractive looking certificate that is illustrated with Disney characters. The colors match the color of my son’s room, which is an important feature for my wife. The Walt Disney company currently pays a $0.35 annual dividend that currently yields 1.1%. While that dividend is modest, it will still be exciting for my young son to receive an annual check addressed to him. The wide economic moat of the Disney brands should keep the dividend safe for quite a while.
A framed stock certificate makes a great gift for child in your family. When considering purchasing such a gift, it might be worth buying the stock though one of the specialists that deal with framed stock certificates. This will likely save on brokerage fees and also provide an attractive frame, which also usually allows for a personalized engraved message. It might be a few more years before I get a stock certificate for my sone, but it is a gift defenitely worth considering for older children.
Disclosure: I do not currently own shares in The Walt Disney Company. This is a sponsored post.