Guiding Children On How To Invest In The Stock Market


However, most such gifts are just that – stuff.
How about giving your children something more meaningful? Say, for example, gifting them things that prepare them for stronger financial freedom in the future? This could be by making sound financial investments for them and bringing them up in a financially conscious manner.
According to Jakie Marshall, there is a brilliant way to do that. It’s through a combination of “stuff and stock.”
Through her JackieTrust, they teach patents to be sensitive to their children’s likes and identify stocks that correspond to such likes. For example, if a child likes sneakers, Nike could be the corresponding stock. Then, as you gift them with Nike sneakers, also invest some money for them in Nike stocks.
“If they love sneakers, we look at Nike. If they love Mickey Mouse, we look at Disney,” explains Marshall.
She advocates for DRIPs (Dividends Reinvestment Plan). With a DRIP, your dividend or other earnings with the company are automatically converted into more stocks. That means your child’s shares will gradually grow within the Custodian or UTMA account. Another great thing with DRIPs is the fact that you don’t have to purchase a whole share of your choice company. Since it involves dealing directly with the company, share percentages are properly accounted for.
The child must be informed about the investment. This will help them grow while conscious of the company and its performance in the stock markets.
“JackieTrust always begins with what is of interest to the young person,” adds Marshall. “We connect their interest to stock ownership. We determine a preliminary list of child friendly gifts belonging to companies offering DRIP.”
The nature of DRIPs is that they encourage long term ownership as opposed to active trading, thus giving the parent the peace of mind and time to review and establish the status of the investment at different levels.
The idea of JackieTrust was born 12 years ago, when Marshall’s nephew was born. “I didn’t want to give him traditional gifts. I wanted to give him something meaningful and valuable—meaning, it would appreciate [in value]. So, I began to investigate how to best to give him stock. From there, I started providing lessons about the stock market. I started teaching other adults and their children,” she says. JackieTrust would later be officially incorporated in 2013.
“As an investment and educational tool, buying stock in a way that is easily understood by children teaches financial literacy, stock market savvy, and how to grow wealth. Investing will also assist in developing math skills, as kids watch and evaluate how their investments grows over time,” adds Marshall.
She points out that she isn’t a stock broker, but a financial advisor.

Comments (1)
No. 1-1

We need more instruction and education on this within the black household.

Investing in your future