5. Initiate an Interest in Investing
One way to make the most of a child’s passion for a particular product is to discuss who is actually making the money from that product and how she can move from being the “spending consumer” in the transaction to become a “receiving owner.”
The best way to become an owner of a company is to buy shares of stock, assuming it’s publicly traded. Whenever children express an interest in a store or product, the parents should ask if the kids have checked to see if the company is publicly-traded, and have them research the basic fundamentals of the company’s earnings and stock price. When they’re ready to make a purchase, a website called Sparkgift allows users to buy full or fractional shares of thousands of different stocks (and mutual funds) for a very affordable fee. Parents can even establish a gift registry for others to apply funds towards a child’s investment wish list. Since it’s all done electronically, friends and relatives from far away can easily participate.
However, if it’s possible for you to open an account for the child at your firm and purchase small amounts of shares cost-effectively, by all means do so. The parents will appreciate you taking the time to handle the paperwork. You in turn can establish a relationship with the child — who between saving, investing, and inheriting, may one day be a very desirable client.