The Money Mustache Community
Learning, Sharing, and Teaching => Investor Alley => Topic started by: C40 on December 09, 2016, 08:02:17 PM
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I have two nephews. They are little kids now. I want to help them learn about how saving money can create income. I'm thinking about buying them each some dividend stocks, so they get the actual money each quarter/year and can spend it on whatever.
I'm trying to decide how to set it up. Any advice? I'm leaning towards making separate accounts in my own name and getting the dividends to them each quarter myself by check or paypal, which their parents could convert into cash for them if that's better.
Does anyone know of other ways to do it where:
- The accounts are in their name or belong to them legally.
- They can withdraw the dividends
- They CANNOT sell the stocks and take the proceeds
- I can sell the stocks and buy others (if one of the companies runs into trouble or the price goes up so much it makes sense to sell and buy other stocks). (and at some point - many years later, I can transfer this power to them)
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We have 4 kids--we basically set up accounts with money that we had been saving for them, but we put it in our names. I do believe that if you put it in their name, it is legally theirs. It was much easier for us to put it in our names, than to put it in their names and then have them want to cash out a portion of it to go buy.......let's say something like fireworks or candy. :) And if you do set it up in your name now, think of what a nice gift it might be for them years down the road when they graduate, and you may be able to contribute to their education.