When buying holiday gifts for the children in your life this year, some experts say you may want to consider an additional gift, one that may last far longer than a new toy: an investment in the stock market.
Giving investments can not only be a great way to start building savings for the child in your life, but it’s a gift that can also help foster financial literacy, says Flavio Landivar, a certified financial planner and senior financial advisor at Evensky and Katz/Foldes Wealth Management in Coral Gables, Florida.
“Kids, even starting at age 4 to 7 years old, start understanding and can have some sort of conversations about money,” Landivar says. Gifting a yearly investment “can build a huge foundation for minors at any age.”
While most brokers require you to be 18 to buy and sell stock, parents, friends and other family members can open certain accounts on behalf of a minor. Before gifting, experts say to consider how much you can comfortably give, the tax rules involved and which account best fits your needs.
The amount you choose to give should depend on your comfort level, Landivar says. In 2025 and 2026, the IRS allows you to gift up to $19,000 per recipient annually tax-free without using any of your allotted lifetime gift and estate tax exemption.
