Top 5 Best stocks for Kids to Buy
As a child grows up a parent is worried about the development of the kid and how he or she learns about life preparing for upcoming adulthood, all parents want their kid to be able to get a better life.
First of all, we would like to welcome any kid or parents reading this article as we will be discussing detail on how a kid can buy stocks and also provide you with a list of the best stocks for kids to buy.
It’s a matter of the future of the younger generation and it should not be taken lightly as you are reading this article on the best stocks for kids to buy you must be serious in understanding all the concepts and implement them for a better future of a young kid.
Why do you think a kid must look to find stocks, its because finance and investment education generally starts pretty late in our education system, and hence to help your kid stay ahead in life one needs to encourage kids to start reading finance articles and be ready for investing their savings and pocket money.
A kid growing up may have many dreams including going to an Ivy League college which requires a lot of money, hence it’s important that one introduces their kid to the idea of investment and saving.
Today in this article we will aim to help many parents who are looking to allow their children to invest in stocks and help them find the best stocks for kids to buy.
You could unlock all your queries about making an investment in the stock market, and we promise all kids that your search for the best stocks for kids to buy will end at this article.
Can kids (below 18 years of age) buy stocks?
One of the first questions which arise in the mind of a kid or a parent looking to help his or her kid in the world of the stock market is whether it’s legal to buy stocks as a kid (below 18 years).
So the law states that if you are below the age of 18 you can’t directly create a brokerage account however you can open a custodial account which is under the supervision of your parents or legal guardian.
All the states of the United States of America are bound by this legal age rule and across the states, there is no change or way out of this rule.
We recommend any kid going through our article and looking forward to learning and investing in the stock market must discuss their interests with her parents before opening a brokerage account and trade or investing in stocks only after thorough research of stocks and time spent to increase her knowledge in finance.
List of Best Stocks for Kids to Buy
Welcome to all our little friends who are in the quest to find the best stocks for kids to buy, well we are here to help you build a portfolio that will be
1. Alphabet (Google Class A stock)
Market value: $1.27 Trillion
Headquarters: Mountain View California, United States of America
Current Market Price: $97.50
CEO: Sundar Pichai since 2nd October 2015
Founders: Larry Page, Sergey Brin
Business Overview: Google is a multinational technology-based company that operates in a diversified business space providing search engine services, online advertising, cloud computing, artificial intelligence, etc.
The company has grown immensely over the years providing video services through youtube, email services through the now famous Gmail, etc.
Why we recommend buying stocks of google
- A strong financial condition
- Strong future outlook
- A diversified business model and the growth of IT make its future look bright
One important piece of information regarding the stocks of google is that it provides the public with 2 types of stocks: 1) Class A alphabet stock which also gives voting rights to the investor and 2) Class C alphabet stocks which have no voting rights.
Market value: $1.23 trillion
Headquarters: Seattle, Washington United States of America
Current Market Price: $121.18
CEO: Andy Jassy since 5th July 2021
Founder: Jeff Bezos
Business Overview: Amazon is a multinational IT company that provides services like e-commerce, and digital streaming with a focus on emerging technologies like cloud computing and artificial intelligence.
Why we recommend buying stocks of Amazon
- Robust financial performance over the last 5 years
- Market leadership in the eCommerce space
- Global presence in diversified business operations
Market value: $1.23 trillion
Headquarters: London, United Kingdom
Current Market Price: $147.96
CEO: Tim Cook since 24th August 2011
Founders: Steve Jobs, Steve Wozniak, Ronald Wayne
Business Overview: Apple is a multinational company that operates in the business of producing electronic products with the use of complex technology and provides some of the best electronic consumer products like iPhones, I-Pads, Apple Tv, etc.
Why we recommend buying stocks of Apple
- High market share in electronic goods for high-cost products
- A sticky business model which forces consumers to buy all electronic products provided by Apple. Once you buy you will have to buy all the products to ensure you can make life easy. Rather than a product, it provides an ecosystem of products to its users
4. Coca Cola
Market value: $244 Billion
Headquarters: Atlanta, Georgia United States of America
Current Market Price: $56.8
CEO: James Quincey since 1st May 2017
Founders: Asa Griggs Candler
Business Overview: Coca-Cola is one of the largest beverage companies globally. It manages around 200 brands including Barq’s root beer, Costa Coffee, Dasani water, Fanta, Fresca, Gold Peak and Honest teas, Minute Maid, Powerade, Smartwater, Sprite, and Vitaminwater which are some of the best brands Coca-cola has.
Why we recommend buying stocks of Apple
- It has an extensive portfolio of beverages
- Well-known people globally bring the trust factor required to drink the various drinks of Coca-Cola.
- High dividend yield company that provides dividends each year
Market value: $172 Billion
Headquarters: Chicago, Illinois United States of America
Current Market Price: $232.16
CEO: Chris Kempczinski since 4th Nov 2019
Founders: Ray Krock
Business Overview: McDonald’s is a well-known brand globally that manages fast food restaurants selling mostly fast food.
It has spread across 118 countries with roughly 34000 restaurants and serves nearly 69 million customers daily.
Why we recommend buying stocks of McDonald
- Global presence with the high popularity of its food.
- Strong financial condition and performance over the years
- Strong management
- Positive outlook by research analysts
Step By Step Guide: How Kids can Buy a Stock
As we have already discussed that a kid or a below 18-year-old person cannot directly open a brokerage account to buy a stock they need to make an account with their parents or any other adult acting as guardian of the brokerage account.
For illustration, we will give you the example of an application known as Greenlight + Invest to help you understand each step you need to take to buy a stock.
- Convince your parent or guardians to help you in opening a brokerage account for investment in stock
- Register in the application portal
- Fill in all required details
- Once an account is activated deposit money from the bank account
- Start Buying a stock and enjoy investing.
FREQUENTLY ASKED QUESTIONS (FAQs)
can a kid buy a stock?
The answer is it’s not possible directly. However, a parent can buy stock and transfer it to their kid’s name or alternatively open a custodial brokerage account for a minor to buy a stock.
Name 10 stocks a kid can look to buy.
Some of the best stocks for a kid to buy are Netflix, Google, Amazon, Oracle, Coca-Cola, McDonald’s, Tesla, Meta (Facebook), and Disney.
how can I build wealth for my kid?
Over a long period of time stock market has provided the highest rate of return and hence is the best place to invest in if you are looking to create wealth for your kid. So start planning and create your long-term portfolio fo stocks for building wealth for your kid.
Finally, we have completed this article on the best stocks for kids to buy. Our main aim to write this article was to help the young generation of the country to invest in the stock market and learn about saving and investment,
We hope that reading this article was both enjoying and at the same time encouraging to the kids and their parents allowing them to invest in the stock market.
For all our little friends reading this do start reading finance-based articles and enhance your knowledge for better learning. We have already listed the 5 best stocks to make a portfolio, but you should never just stay limited to 5 stocks, keep learning, and keep building your portfolio of stocks for greater returns.
With age on your side and starting early, you should always aim for the sky.