Financial Gifts to Kids
Parents and grandparents once thought it was cute to gift a child a single share of Disney or a savings bond. It was practical, and besides introducing a new generation to stocks, the pictures on the stock certificate made it a good gift for children. Today, few people actually take ownership of stock certificates. Instead, stocks are generally held in brokerage accounts or in mutual funds. “It’s a digital world now,” says Greg Hammer, president of Hammer Financial Group in Schererville, Indiana. “You can’t even buy a physical savings bond anymore. There’s no more paper, no more certificates. When you buy a stock today it’s bought through a brokerage.