Birthday Bonanza, Part 6 of 8

Hi, all.

It’s time to talk about how to open an investment account for your child with the $1000 you’ve set aside for this purpose.

What type of account should I open?

I opened a custodial account for my daughter.  I currently control it.  She will take over the account when she is 21.

I think this is a good place to start.

Here is a list of brokerage firms you may consider:

Firm Commission (Per Trade) Minimum Account Balance
TD Ameritrade $6.95 No minimum
Merrill Edge $6.95 No minimum
E-Trade $6.95 $500
Ally $4.95 No minimum
Charles Schwab $4.95 $1000

I, myself have accounts with TD Ameritrade.

I also have a personal account with Robinhood, although they don’t currently offer a custodial account for minors.  I mention it here because Robinhood doesn’t charge a commission, and as such is a wonderful vehicle through which to start a personal investment account for yourself with very little money.  (For more detail, please check out my short investment guide, The Stock Market is For Everyone.)

Watch this space tomorrow.  I’m going to be sharing an episode of one of my favorite podcasts that is geared specifically toward beginning investors of all ages!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)

Birthday Bonanza, Part 5 of 8

So far, in my “Birthday Bonanza” series, I’ve discussed:

Now, it’s time to take action.

If you have $1000 ready to open your child’s investment account, great!

Saving a thousand dollars, though, is a very challenging task for some.  This includes married couples and single parents alike.

However, there are a number of ways to come up with the money.

Here are some ideas:

1) Use your income tax refund to fund your child’s investment account.

2) Save $83 per month for 12 months.  The goal of saving for your child’s future should be more than enough motivation to do so!

3) Work a second job, or start a side business, with the purpose of using the first $1000 in profit to fund your child’s investment account.

4) If you are so financially strapped that you can only put $25 a month aside, then put $25 a month aside!  Some money is far better than no money.

I’m sure that many of you have income-generating and/or money-saving ideas to share.  Please don’t be shy!  Tell us about them in the comments section here, or on my Facebook, Twitter or LinkedIn page.

In the next installment, you’re going to open your account!

 

My book, The Stock Market is For Everyone, is a short guide for the beginning, inexperienced investor that is easy to understand and can be put into action immediately.

Click here to be taken to its Amazon page.

(Disclosure: As a participant in the Amazon Services LLC Associates Program, I earn a small commission on each sale generated through these links.)