Remember that time is on their side. Over a lifetime, they will live through more market cycles than we adults can imagine and therefore can afford to wait for recovery of a stock or a market in transition. That kind of gift sure beats a Sony PlayStation 2. However, sit down with the youngsters on your list and do the math. Here are some more ideas for adding investment gifts to your holiday giving repertoire.
DRIPs are a simple way to get started.
If you buy directly from the company, some may require that one share of stock be purchased through a brokerage firm. Avoid high commissions and fees for getting stock certificates. Getting a stock certificate to put in the Christmas stocking can cost a pretty penny if you buy it from one of the large wire houses like Merrill Lynch, Charles Schwab, or PaineWebber. Don't wait until the last minute to do this. The process of buying and delivering the certificate can take up to two weeks.