Alternative Investments for Kids?

[ScottO]

I'm trying to come up with an alternative investment for my kids besides their savings account and brokerage account. Something they can flip fast to see how money can build.

Any ideas of something they could buy for $5 that could easily be liquidated later for a small profit?

[Ima saver]

You could offer to match a portion of what they save. When my granddaughters get old enough to work and have a roth ira, that is what I am going to do.

[Snoopy2645]

how about savings bonds my dd 11 loves using her allowance to buy these she sees right away what will become of this because if she puts in $25 she can get a $50 certificate so she sees it as doubling her money I just tell her she has to hold onto it for along time. So anyways she thinks that is neat.

[Ima saver]

That is a good one snoopy. i use to give those for graduations presents.

[baselle]

Originally Posted by ScottO

I'm trying to come up with an alternative investment for my kids besides their savings account and brokerage account. Something they can flip fast to see how money can build.

Any ideas of something they could buy for $5 that could easily be liquidated later for a small profit?

Your kids have a brokerage account? Lucky them!
How about buying a dividend stock and starting a DRP of a company whose product they know about and use - McDonalds, Wrigley, and Coke are the classic ones.

You can find a DRP stock that doesn't charge a fee, the minimums are small (haven't seen anything in the 5$ range, but there are 10$ ones), and have them watch how dividends are reinvested. The only thing is that DRPs really aren't a "flip fast" thing.

I will warn you here that stocks can go down, so you might not make any hot or fast money. That can be the most important thing you can learn in any investment.

Check out http://www.directinvesting.com/ for more info.

[ScottO]

Like I said, they already have financial assets. I'm trying to think of something they can spend their non-investment disposable income on that won't be a waste of money. For instance, when I was a kid, I could buy baseball cards. Back then they actually had value and went up in value. Now they are so over-produced they drop drastically in value. You can pick up complete sets of any year's baseball cards still in the shrink wrap from eBay for $5-$10 for the past 20 years.

Here's an example: A complete set of UD Baseball cards for the year 1990. The seller was only asking $4.99 for the complete set of 800 cards and no one even bidded.

[shelbylovesmelby]

Originally Posted by Snoopy2645

how about savings bonds my dd 11 loves using her allowance to buy these she sees right away what will become of this because if she puts in $25 she can get a $50 certificate so she sees it as doubling her money I just tell her she has to hold onto it for along time. So anyways she thinks that is neat.

I've been buying them since my oldest was born. Also FYI... If possible try to buy "I" bonds right now they are @ a fantastic rate. I really need to get in & order a few for us. I think they were @ over 6.50%.

Also CD's aren't paying the best but they are starting to gain ground again. Some places will allow you to opt to have your quarterly dividends mailed to you. So that may be a fun idea for the dc's to see their investment paying off.

[sweeps]

Originally Posted by shelbylovesmelby

If possible try to buy "I" bonds right now they are @ a fantastic rate. I really need to get in & order a few for us. I think they were @ over 6.50%.

Don't do it. The yield on I-Bonds is going to plummet in May. See Jeffrey's thread for more info.