The Gift That Keeps on Giving

On the road to wealth. Here are a few ideas you can use to give your child a gift that may provide returns for years to come.

The Christmas jingles in the malls start earlier each year, all designed to put you in the spirit for spending. Those irresistible early dawn discount store sale marathons can be hazardous to your wealth. Perhaps you were thinking of purchasing the latest game system, MP3 player, or just-musthave designer bag for your tween?

How about bypassing the local mall and shopping on Wall Street instead? It’s as simple as going online to research companies like Target, EA Games, or Sony. For less than what it would cost you to purchase the hottest toy this season you could gift shares of stock or set up an automatic investment program that can put your offspring on the road to wealth. Here are a few ideas you can use to give your child a gift that may provide returns for years to come.

Use your shopping excursions as market research. The holidays are an excellent time to observe consumer behavior. If you had taken the time to visit an Apple store in the mall last Christmas you would have observed mad crowds buying iPods and iBooks. Before you invest you must do your homework to learn more about the company’s track record and ability to increase its sales and earnings. Visit www.betterinvesting.org which is a nonprofit organization whose mission it is to help individuals become investors.

Nickel and dime your way to wealth. Your child can begin an investment program with as little as $10 at www.sharebuilder.com and gain access to the “What If” tool which allows them to learn how their money could have grown if it had been invested in a companies’ stock.

Gift wrap a share of stock and put it under the tree. You can gift a share of stock at www.oneshare. com. Invest in one share of stock that will be delivered in the frame color of your choice.

Legend has it that Rockefeller was given one share of stock as a young child and this inspired him to learn more about stock ownership. You could be responsible for creating the next Warren Buffet during this holiday season.

PDF Version: The Gift That Keeps on Giving – Cents