I have a 2yr old niece and thought it would be nice to buy her a share of stock or something for each of her birthdays and christmas' throughout the years. I am a college student so starting a CD for her with a $1000 isn't really an option. I was thinking something I could do for her little by little and have it amount to something by the time she could use it (school/car/whatever). Maybe a stock I could continue to buy shares in each year?
Looking for any ideas...and please provide a website or something for me to view suggested options where possible.
Thanks!
2007-11-27 08:25:07 · 14 answers · asked by Mia 1 in Business & Finance ➔ Investing
put a set amount of money in the bank (under her name)
in an account that gains interest
...certain accounts gain a lot more interest than others depending on whether or not you need to access the money and how much is put in
and since she doesn't need to access it this would be a good deal
(plus this is more financially secure than say, a stock, because you never know what the market will be like in the long run)...we may all wake up one day and decide that zunes are better than ipods, you never know.
2007-11-27 08:29:38 · answer #1 · answered by man on the mountain 3 · 0⤊ 0⤋
Not individual stocks (too risky), but buy an index fund. It has low, low fees, tracks a certain index such as the S&P 500, and you can contribute a little every month or so (dollar cost averaging) to build your savings. That would be a great way to go. Also, if you want to help save for her college, you can invest in a 529 college savings plan or a Coverdell savings account. A 10-20 year savings bond would also be good, but only along with the college savings plan and or an index fund.
2007-11-27 14:26:21 · answer #2 · answered by Anonymous · 1⤊ 0⤋
That's a nice idea, you might try investing in something she understands, like Disney (DIS). Other potentials, based on your own opinion of course - Coke, Pepsi, McDonalds, Time Warner, Verizon, ATT (thinking in a few years she will have a cell phone).
Another option is US Savings Bonds. You buy them for 1/2 their face value, when they mature they are worth the face value. You can buy them at any bank, they come in face value denominations like $50, $100, $500. We got several of those when our kids were born, they don't even know about them, figured I'd give them to them when they get married, assuming they do someday. By then they will be worth more than face value.
2007-11-27 08:35:29 · answer #3 · answered by Fester Frump 7 · 2⤊ 0⤋
A stock is to risky...buy a commodity like gold. Or a municipal bond. A thousand dollars in a bank like Credit Suisse and convert to Euro Dollars..add to that account as much as you can.
2007-11-27 08:33:28 · answer #4 · answered by Anonymous · 0⤊ 1⤋
Look into DRIPs (dividend reinvestment programs). It's when you buy a share of stock from a company directly (instead of a broker) and it just grows automatically. It would be perfect for your budget.
2007-11-27 14:00:45 · answer #5 · answered by Anonymous · 1⤊ 0⤋
i cant believe that dude said stocks are risky so buy commodities as if trading futures (WHICH ARE ALL TRADED WITH LEVERAGE) isnt risky? unless he meant a physical gold necklace or bracelet or something, in which case the kid could hawk it for half the price YOU paid for it when they're 18 lol...........Just go to the bank and buy some long term CD's or bonds for their future education.
2007-11-27 13:27:45 · answer #6 · answered by In My Humble Opinion 2 · 1⤊ 0⤋
The Gerber Grow Up plan
2007-11-27 08:28:03 · answer #7 · answered by newton3010 6 · 0⤊ 2⤋
A pony, or maybe one of those savings accounts that the child can't touch until they are 18.
2007-11-27 08:29:34 · answer #8 · answered by tolbunt5 3 · 0⤊ 1⤋
stocks are dodgy maybe find a good bank with a good interest rate
2007-11-27 08:28:47 · answer #9 · answered by mim 3 · 0⤊ 0⤋
Starbucks, IPod, pac sun, hot topic, any energy drink
2007-11-27 08:30:48 · answer #10 · answered by Disturbia 3 · 0⤊ 2⤋