/ Ask Terry Questions / Stock market introduction for teens

Stock market introduction for teens

By Terry Savage on November 08, 2021 | Investments

What is the the best vehicle to get my grandkids started with stock investments?

Terry Says

Well, a couple of things come to mind. First, if you put stocks in their name, they will count as “assets” in the financial aid formula when they apply for college. And a child’s assets weigh very heavily against the family in the aid calculations. So you would be better off opening a 529 college savings plan account on their behalf. (Check in at www.SavingforCollege.com to learn more, or search for columns on 529 plans on my website).

But I’m assuming you really want to discuss stocks and teach investing. With small amounts of money, you could go to www.Stockpile.com and buy fractional shares for them. This website also has excellent learning tools. And you can facilitate your “gifts” using giftcards that allow the child to pick the stocks he or she likes and uses — maybe McDonalds, or Nike, or Apple, for example. Spend a little time on their excellent website and you’ll see what I mean.

money

ASK TERRY

a personal
finance question