Gifting Stocks to Kids

Family Legacy Planning

In December of 2022 , I had the pleasure of speaking on a nationally syndicated morning TV show. I talked about giving stocks to kids and not always toys.

As I was talking, I heard the moans and groans of my daughter. If I ever gave my 4-year-old a stock as a gift without explaining how that stock can benefit her in the future, moans and groans are an appropriate response. That is why a conversation about investing, along with basic financial education, is an essential component of the gift. It’s not about the value of the stock or the company you choose to give.

If only there was a start over, edit, or undo button for a live interview. If so, I would have repeated education, education, and more education is the gift, not the stock. Even if the stock does not perform to expectation, there is still a lesson to be learned, such as diversification and not risking the entire savings on a single company.

In my interview, I did provide a few examples of potential public companies a child could see and point to around their home or community. Over time a child could start connecting the dots and grasp the concept of investing in companies around them and not just becoming a consumer of their products and services. This is a strategy and subtle investment worth considering for any little ones in your family.

My daughter will continue to receive toys for gifts, but a conversation on stocks will be in her stocking soon!

Stock Market Gift Giving


Stock Investing includes risks, including fluctuating prices and loss of principal.​ Dividend payments are not guaranteed and may be reduced or eliminated at any time by the company.​ Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services.  LPL Financial does not provide research on individual equities.

Latest Posts:

Create a Plan for Death and Taxes

Create a Plan for Death and Taxes

I recently talked about the importance of Tax Planning on The Daily Flash, a nationally syndicated morning TV show (See below to watch the segment). I touched on the two guarantees in life DEATH and TAXES! We can never avoid these events, but we can certainly do our...

A Family Enterprise Approach to Generational Wealth

A Family Enterprise Approach to Generational Wealth

The goal and purpose of Traditions Wealth and Legacy Planning is to help families sustain wealth for multiple generations. According to research: *70% of family wealth will be lost by the 2nd generation. *90% of family wealth will be lost by the 3rd generation The...