The time to buy stocks for your children is now. As soon as a baby is born, you can start investing. While many parents prefer mutual funds, others like to teach their children about the stock market by purchasing individual stocks that interest them. This can be a great way to educate your children about investing and to create wealth for your children's future.
Instructions
1. Buy a slow-growing, high-dividend stock for your children. This should not be the only name in your children's portfolio, but there should be at least one very safe play to guarantee some money for your children's future.
2. Do some speculation. At the same time, you should also buy a stock for your children with significant upside potential, even if it involves some risks. The younger the investor is, the more he or she can absorb risk, as long as there are also some safe plays in the portfolio.
3. Find a stock your children like. You may want to invest in their favorite soft drink or amusement park. Get them a stock certificate, discuss gains and losses with them and show them stock charts. This is a great way to get your children personally involved in the stock market.
4. Get a stock with a long-term catalyst. If you think alternative energy is going to be the wave of the future, then buy some solar stocks, for example. Investing for your children can provide you the opportunity to look at some very long-term possibilities.
