How To Give Stock To Kids As A Gift

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If you’ve been wondering how to give stock to kids as a gift, you’re in luck. Kids have an abundance of “stuff” these days. 

Giving them a financial gift to help build their financial futures can be a great way to make a lasting impact. 

We’ll show you how you can give kids stock as a gift and which companies can help you do that. 

Top Ways To Give Stock To Kids

Here are some ideas for giving stock to your kids or other kids as gifts. 

1. Buy Shares of Stocks

One way to give kids stock as a gift is to buy them stock shares from your (or their) favorite companies. 

There are several investment apps and companies that will allow you to buy not only whole shares of stocks, but fractional shares of stocks as well. 

When purchasing stocks or shares of stock as a gift for a child, you can make it extra fun (because getting money as a gift is already fun!) by creating a theme around the gift. 

For instance, you can buy stocks in a theme such as:

  • Blue chip stocks
  • Stocks from their favorite clothing or toy brands
  • Stocks from their favorite restaurants
  • Sports team stocks or gaming-related stocks

Imagine being a kid and getting a share or two of stock in Hershey’s. Or shares of stock in your favorite gaming company. 

The possibilities are virtually endless. Whether your goal is to create a solid, steady-growth portfolio or a higher-risk “just for fun” portfolio, buying stock shares is a great way to give a kid a gift.

2. Open A Custodial Brokerage Account

If the child you’re buying for is a minor, you may want to set up a custodial investment account

A custodial account is an account in which the funds are designated for the benefit of the child. However, the account is managed by the custodian. 

Anyone can open a custodial brokerage account for a child–even if they aren’t related to the child. But know that you’ll need to have the child’s Social Security number to do so. 

If you don’t want to be listed as the account’s custodian, you can always ask the child’s parents to open the custodial account in their own name.

Anyone can contribute to a child’s custodial brokerage account, even if they’re not the custodian.

3. Set Up A Dividend Reinvestment Plan (DRIP)

A third option is to set up a DRIP program for a child. FirstShare is one company that will let you set up custodial accounts for kids where you can buy dividend-paying stocks. 

You can also set up DRiP programs directly through companies that you want to buy stock shares in as well, such as Hershey’s or 3M. 

Once you purchase the stock shares, you’ve got to specify that the dividends from the stocks are to be reinvested. 

DRiP programs are a great way to help multiply the compound interest the gift recipient earns as the stock value grows.  

4. Contribute To A 529 Plan

You may find some information on the internet about contributing gifts of stock to 529 plans. 

It’s important to note that you cannot deposit stock shares to 529 plans. Conversely, you can contribute cash to a child’s 529 plan. 

And that cash can be used to purchase shares in a qualifying stock or bond mutual fund for the plan. However, giving stock directly to a 529 plan isn’t allowed.  

Anyone can contribute to a child’s 529 plan–including family members and friends. Simply ask the parents of the child you want to give stock to if they will buy allowable stock mutual fund shares with the gift money you give them. 

Each 529 plan has a list of available stock or bond mutual funds you can invest in. You, as the gift giver, can research the available options for the child’s plan if you wish and designate the fund you desire the money to go to. 

5. Companies Where You Can Give Stock To Kids

There are several investment companies that will allow you to give stock as a gift to kids. 

Unlike the options mentioned above, you don’t have to have a custodial account, 529 plan or DRIP Plan to give the gift of stock with these companies. 

Here are some companies that will help you buy stock shares to give as gifts. 


The Public Investing app lets you buy “slices” or pieces of stock shares for as little as $5. Once you open your Public account and start investing, you’ll see a place in the app for giving stock as a gift. 

Since the Public app allows you to buy small slices of stock as gifts, this is a great avenue for purchasing stock for kids no matter your budget. 

Bonus: Public doesn’t charge fees for the stock shares you purchase. 


Stockpile is an investment app that’s geared toward parents and children. 

You can go on the Stockpile website and buy a gift card that kids (or their parents) can use to buy stock shares. 

As with Public, you can buy fractional stock shares with Stockpile as well. Each trade costs 99 cents, and you have to purchase at least $1’s worth of each stock you buy. 

Bonus: Stockpile does give you the option to reinvest the dividends you earn on your stock shares. 


GiveAshare is a company that allows you to purchase shares of stock and give them as gifts. They’ll even print out a stock share certificate, frame it, and send it to the recipient on your behalf.

GiveAshare has over 120 company stocks to choose from. You’ll pay the market price for the stock share you purchase, along with some additional fees.  There are extra costs for framing as well.

Note that if you use GiveAshare, you’ll need to provide the child’s name and address, along with the name and address of their guardian. For some stock shares, you’ll also need to provide the recipient’s Social Security number. 

6. Check With Your Brokerage Firm

Many brokerage firms, such as Fidelity and Vanguard, will let you transfer stock shares from your account to another account owner. 

Certain stipulations have to be in place for this to work. First, the recipient has to have an account at the brokerage you want to transfer to, whether it’s an individual account or a custodial account. 

Second, your investment company has to allow for the transfers. Or you could always simply write a check to the child’s investment firm, specifying which companies you want to buy stock in.

Or you could give the child the freedom to decide on their own or to put the money in an existing mutual fund. 


If you’re asking how to give stock to kids as a gift, it’s clear you’re considering a gift that will have a powerful effect. 

Teaching kids the power of investing by giving them stock shares as a gift is a great way to help them learn lessons that will last a lifetime. 

Have you ever given stock shares to a child as a gift? What are your favorite books or other resources for teaching kids about money or investing? Feel free to share in the comments section.