Children’s products are a wide-open market for investment. Learn where to start in this guide to buying stocks for kids products and companies.
Today’s young adults are investing in stocks less than ever before. Many millennials are still shy about investing thanks to the aftermath of the Great Recession.
However, with the right approach, the kids growing up today can learn to love stocks again.
Buying stocks for kids is a great way to teach the children in your life the power of investing. And some of the best investments for kids may also turn out to be great investments for adults.
But how can you start investing for kids? Here’s what you need to know to make the right investments for your children — and yourself.
When to Start Buying Stocks for Kids
Some may argue that it’s never too early to buy stocks for kids. However, many experts agree that waiting until children are around 10 to buy stocks for them is a wise move.
If you buy a younger child stock, they won’t be able to fully understand what that means. You might show them the account when they get older. However, since they haven’t followed the value of their stocks over the years, they won’t understand what those numbers reflect.
Waiting until a child reaches 10 allows them to see and understand the investing process from the start. You can invest money that will someday serve as a college fund, down payment, or other significant expenses.
Over the years, your child will see how even a small amount of money can work when invested wisely.
How to Choose the Best Stocks for Kids
While there are many investment options for kids, stocks are a great place to start. They’re easy to understand and can be very lucrative. Now, how can you decide which stocks are best to start out with?
Investing in kids’ products is a great way to get your child interested in the world of stocks.
You could buy stock in a company that makes their favorite toy, for example. The child will feel a personal attachment to their stocks, which will help them stay interested in learning the ropes.
Brands like Anderson Trophy or Mattel offer promising investment options that kids will love. Other great options for buying stocks for kids include clothing stocks and food stocks.
You may also want to buy a mix of stocks. Some can be brands that children are emotionally invested in. Others can be brands that are less exciting to children, but more promising in terms of payoff.
Are Kids Products a Good Investment Strategy for You?
When buying stocks for kids, you might start to think that some of those products are worthwhile for you to invest in as well.
Kids’ products can offer lots of growth potential, although it’s also a difficult market because kids’ tastes and trends change fast. If you find a product that looks poised for steady growth, though, why not invest in it yourself?
Today’s parents spend heavily on their kids, making these products a good market.
However, no matter the industry, you should never buy stocks without doing careful research first. Make sure to visit our Business section regularly for the latest news that will help you (and your kids) invest wisely!