How do you get children interested in the stock market and instill a life long appreciation for the need to save and invest? The earlier you start interesting children in investing and saving, the better their prospects for a financially independent future. One way is to buy shares of specific stocks that kids recognize. Unfortunately on-line brokers that charge minimal commissions, usually require a minimum purchase of $1,000. Even through discount brokers, commissions on purchasing just one or two shares can be expensive. Rather than purchase individual company shares you may find itís cheaper to invest in a mutual fund that holds some of the above companies in its portfolio. There are a few that allow an opening investment of just $100. With a mutual fund itís easy for the child to make additional investments with cash gifts from birthdays or special achievements. You and your child will need to first decide on the companies and then compare your options based on convenience and cost-effectiveness. Regardless of whether you or your children are actually buying the stock or mutual fund, purchases for minors under the age of 18 must be made through a custodial account. An adult, usually one of the parents, is registered on the account as custodian for the child. That parent controls the account. The account bears the childís social security number, not the custodial parentís.
Are You an Over-spender? Post holiday time is always a good time to take your pulse on over-spending. Over-spending is something for which we need to take responsibility. Itís all too easy to blame it on store bargains, end-of-the-month specials, going out of business sales or just keeping up with the Jones. Sometimes we feel weíre owed a shopping spree because weíve just gotten a divorce or a promotion. To know whether or not you have an over-spending problem, truthfully answer the following questions. Is your spending a topic of dissention between you and your spouse or partner? When you have to put off...Read More