How to Buy Stocks for Kids

Start investing on behalf of your kids by opening an account on Stockpile.

(Image credit: ©JGI/Jamie Grill/Blend Images LLC)
Kimberly Lankford
By Kimberly Lankford
published

Question:

I used the ShareBuilder program through Capital One, which automatically deducted money from my bank account, to buy Disney stock for my niece. The program was discontinued. Is there a similar program?

Answer: Online brokerage Stockpile offers one with no monthly fees or minimums and 99-cent trades. You can sign up for automatic deductions from your bank account and invest in more than 1,000 stocks (including Disney) or exchange-traded funds. You will need to open a custodial account if your niece is a minor. But you can give her access to the account so she can place trades, subject to your approval. Dividend reinvestment is free.

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6 Stocks to Buy and Hold Forever

Topics
Ask Kim Raising Money-Smart Kids
Kimberly Lankford
Kimberly Lankford
Contributing Editor, Kiplinger's Personal Finance

As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.