Pick a brokerage. Look for one with no account fees and $0 commissions .
Print out the trade confirmation and show it to them. Explain that they now "own" a piece of that company. AI responses may include mistakes. Learn more
This is the most common choice. You manage the investments, but the assets belong to the child. They get full control once they reach adulthood (usually 18 or 21). how to buy stock for grandchildren
Safer and easier. Buying an S&P 500 ETF (like VOO or SPY) gives them a tiny piece of the 500 biggest companies in the U.S.
If the grandchild has any earned income (like a summer job), you can open this. It offers tax-free growth for life—a massive advantage for a young person. Pick a brokerage
Since children have a very long time horizon, you can afford to be aggressive.
You will need the grandchild’s Social Security Number and birthdate to open any custodial account. Explain that they now "own" a piece of that company
Setting up a recurring transfer of even $25 a month is often more effective than a one-time large gift.