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How To Give Stock To Kids As A Gift in 2021

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If you’ve been wondering how to give stock to kids as a gift, you’re in luck. Kids have an abundance of “stuff” these days. 

Giving them a financial gift to help build their financial futures can be a great way to make a lasting impact. 

We’ll show you how you can give kids stock as a gift and which companies can help you do that. 

Ways To Give Stock To Kids As A Gift

We moved into a new house recently, and it really made me realize how much stuff my kids have. The answer to that question is “too much”. I suspect this is the case with a lot of kids these days. 

Even if your kid doesn’t have an abundance of toys, wouldn’t it be cool if loved ones could give them a gift that could have a lasting impact? 

A share or shares of stock have the potential to grow over the years. If the market continues to do what it’s always done, gifts of stock could be the gift that keeps on giving–forever.  

Here are some ideas for ways you could give stock to your kids or other kids as gifts. 

Buy Shares Or Fractional Shares Of Stocks

One way to give kids stock as a gift is to buy them stock shares from your (or their) favorite companies. 

There are several investment apps and companies that will allow you to buy not only whole shares of stocks, but fractional shares of stocks as well. 

When purchasing stocks or shares of stock as a gift for a child, you can make it extra fun (because getting money as a gift is already fun!) by creating a theme around the gift. 

For instance, you can buy stocks in a theme such as:

  • Blue chip stocks
  • Stocks from their favorite clothing or toy brands
  • Stocks from their favorite restaurants
  • Sports team stocks or gaming-related stocks

Imagine being a kid and get a share or two of stock in Hershey’s. Or shares of stock in your favorite gaming company. 

The possibilities are virtually endless. Whether your goal is to create a solid, steady-growth portfolio or a higher-risk “just for fun” portfolio, buying stock shares is a great way to give a kid a gift.

Open A Custodial Brokerage Account

If the child you’re buying for is a minor, you may want to set up a custodial investment account for them. 

A custodial account is an account in which the funds are designated for the benefit of the child. However, the account is managed by the custodian. 

Anyone can open a custodial brokerage account for a child–even if they aren’t related to the child. But know that you’ll need to have the child’s Social Security number to do so. 

If you don’t want to be listed as the account’s custodian, you can always ask the child’s parents to open the custodial account in their own name.

Anyone can contribute to a child’s custodial brokerage account, even if they’re not the custodian. For more rules on the varying types of custodial accounts, see this article.  

Set Up A Dividend Reinvestment Plan (DRiP)

A third option is to set up a DRiP program for a child. FirstShare is one company that will let you set up custodial accounts for kids where you can buy dividend paying stocks. 

You can also set up DRiP programs directly through companies that you want to buy stock shares in as well, such as Hershey’s or 3M. 

Once you purchase the stock shares, you’ve got to specify that the dividends from the stocks are to be reinvested. 

DRiP programs are a great way to help multiply the compound interest the gift recipient earns as the stock value grows.  

Can I Set Up Or Contribute To A 529 Plan with Stock Shares?

You may find some information on the internet about contributing gifts of stock to 529 plans. 

It’s important to note that you cannot deposit stock shares to 529 plans. Conversely, you can contribute cash to a child’s 529 plan. 

And that cash can be used to purchase shares in a qualifying stock or bond mutual fund for the plan. However, giving stock directly to a 529 plan isn’t allowed.  

Anyone can contribute to a child’s 529 plan–including family members and friends. Simply ask the parents of the child you want to give stock to if they will buy allowable stock mutual fund shares with the gift money you give them. 

Each 529 plan has a list of available stock or bond mutual funds you can invest in. You as the gift giver can research the available options for the child’s plan if you wish, and designate the fund you desire the money to go to. 

Investment Companies That Will Let You Give Stock To Kids As A Gift

There are several investment companies that will allow you to give stock as a gift to kids. 

Unlike the options mentioned above, you don’t have to have a custodial account, 529 plan or DRIP Plan to give the gift of stock with these companies. 

Here are some companies that will help you buy stock shares to give as gifts. 


The Public Investing app lets you buy “slices” or pieces of stock shares for as little as $5. Once you open up your Public account and start investing, you’ll see a place in the app for giving stock as a gift. 

Since the Public app allows you to buy small slices of stock as gifts, this is a great avenue for purchasing stock for kids no matter what your budget is. 

Bonus: Public doesn’t charge fees for the stock shares you purchase. 


Stockpile is an investment app that’s geared toward parents and children. 

You can go on the Stockpile website and buy a gift card that kids (or their parents) can use to buy stock shares. 

As with Public, you can buy fractional stock shares with Stockpile as well. Each trade costs 99 cents, and you have to purchase at least $1’s worth of each stock you buy. 

Bonus: Stockpile does give you the option to reinvest the dividends you earn on your stock shares. 


GiveAshare is a company that allows you to purchase shares of stock and give them as gifts. They’ll even print out a stock share certificate, frame it, and send it to the recipient on your behalf.

GiveAshare has over 120 company stocks to choose from. You’ll pay market price for the stock share you purchase, along with some additional fees.  There are extra costs for framing as well.

Note that if you use GiveAshare you’ll need to provide the child’s name and address, along with the name and address of their guardian. For some stock shares, you’ll also need to provide the recipient’s Social Security number. 

Check With Your Brokerage Firm

Many brokerage firms such as Fidelity and Vanguard will let you transfer stock shares from your account to another account owner. 

Certain stipulations have to be in place for this to work. First, the recipient has to have an account at the brokerage you want to transfer to, whether it’s an individual account or a custodial account. 

Second, your investment company has to allow for the transfers. Or you could always simply write a check to the child’s investment firm, specifying which companies you want to buy stock in.

Or you could give the child the freedom to decide on their own or to put the money in an existing mutual fund. 

Now that you have some ideas of how to give stock to kids as a gift, let’s talk about another important aspect of kids and investing: education. 

Books That Can Teach Kids About Money And Investing

While you’re giving kids the gift of stock shares, you may want to buy them a book to help teach them about investing. 

Your gift might be more appreciated if the recipient better understands the value of it. 

There are books about investing geared toward kids of all ages. Giving a child an age-appropriate investing book is a great way to help them understand more about the stock share gift you’ve given them. 

Here are some of my favorite books on investing that are geared toward kids and young adults. 

Money A to Z by Scott Alan Turner — Ages 0 to 4

I never thought it was possible to create a board book about money for little ones that was entertaining, educational, and age-appropriate. 

But Scott Alan Turner has managed to do just that with Money A to Z. This book will definitely be on my “best gifts” list for the youngsters in my life. 

It gives kids a great concept of money and how it works, complete with fun characters and engaging illustrations.  

Lemonade In Winter by Emily Jenkins — Ages 3 to 7

Lemonade In Winter is a fun book about two siblings with an entrepreneurial spirit. Read along as Pauline and John-John create a plan to start a lemonade stand at the most unexpected time of the year. 

The kids learn about what it takes to start up a business and have silly adventures along the way. The book is woven with fun math lessons along the way. 

Secret Millionaires Club by Andy Heyward — Ages 8 to 12

The subtitle of Secret Millionaires Club is Warren Buffett’s 26 Secrets To Success In The Business Of Life. That alone should make it a must-read for pre-teens. 

This book shares core secrets about money, morals, responsibility, family, and more. It talks about staying out of debt, saving money, making smart decisions, and more. 

It’s a great book to give any preteen, and it will teach them about money and character building alike. 

The Money Savvy Student by Adam Carroll — Ages 13 to 18

The Money Savvy Student teaches secondary students how to earn, manage, save, and invest money. 

This book contains quotes by famous inspirators such as Zig Ziglar, and shares powerful money lessons as well. I’d go so far as to call this a must-read book for high schoolers. 

It’s a great read for preparing kids to manage money responsibly. 

The Motley Fool Investment Guide For Teens by David Gardner — Ages 13 to 17

The Motley Fool Investment Guide For Teens is subtitled 8 Steps To Having More Money Than Your Parents Ever Dreamed Of. If that doesn’t get a teen’s attention, I don’t know what will.  

Motley Fool founder David Gardner has 50+ years of tried-and-proven success in the field of investing. Who better to teach your kids about investing?  

The Richest Man In Babylon by George S. Clason — Ages 16 and Up

The Richest Man In Babylon was first recommended to me by Well Kept Wallet founder Deacon Hayes. I quickly fell in love with this fun and informative book. 

The author shares wisdom about financial planning, thrift, wealth building, and business in a parable-like format filled with interesting stories. 

This is a great book for teaching kids–and adults–how to earn money, saving money, and grow money. 

The Simple Path To Wealth by JL Collins — Ages 17 And Up

The Simple Path To Wealth by JL Collins has long been touted as one of the best investment books in print. Collins’ instruction on the slow and steady growth to wealth is sound, simple advice. 

Collins takes letters he wrote to his daughter about money and investing and puts them into easy-to-read lessons for older teens and adults. 

The chapters on investing are filled with vital investing information. Yet they’re presented in a concise, no-nonsense fashion that young adults will find interesting. 


If you’re asking how to give stock to kids as a gift, it’s clear you’re considering a gift that will have a powerful effect. 

Teaching kids the power of investing by giving them stock shares as a gift is a great way to help them learn lessons that will last a lifetime. 

Have you ever given stock shares to a child as a gift? What are your favorite books or other resources for teaching kids about money or investing? Feel free to share in the comments section.

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