We want to share how this is the smartest gift for kids and how you can start investing with $1. You can also claim a FREE $5 to invest completely risk free for just trying it! And you can even invest it in Bitcoin! So let’s try to answer the question everyone is asking, “What is Stockpile?!”
Stockpile is a brilliant system for any timid, novice, or hesitant investor. It is not only a brilliant gift idea for anyone, but especially a child. If you are to make any sort of smart gift move, this should be it. In fact, we invested in Bitcoin a week ago with the free $5, and if you scroll below, you will see what this stock has done in one week.
The even better news is that you can get a free $5 of stock to gift to someone to play around with this system and try it out. We started with the free $5 and within a week’s time, our kids wanted to take out $100 from their savings accounts and invest it.
Now that we have tried it ourselves, we want to share why this is quite possibly one of the smartest gifts out there!
What is Stockpile?
Stockpile is online investment and trading company for stocks. They have an innovative method and program that allows you to buy as little as $1 of stock. Although the investment amounts can be small, you can still invest in big companies like Tesla, Bitcoin, Facebook, Apple, Google, Disney, etc.
You can trade, buy and sell and play with your stock market investments and make a game out of it. Our kids have had so much fun watching their accounts grow already. Right now, they have only been playing around with the “gifted” stock amounts. But we plan to gift them more (more on that below) and help them invest some of their savings too. Some of our older kids have even decided to take money out of their savings and invest it in stocks through Stockpile.
Each of our kids have invested in a different company. It has been super fun to watch how each child’s decisions is affecting their growth. Some of them researched (the older kids) while the younger kids bought stocks in companies they know.
Mom and dad are totally in control of the 2-year olds account. We have chosen Bitcoin for this this little boy. Bitcoin is an interesting one, just starting the year at under $100 and now over $1,850 (stock price not currency value). Unfortunately, we didn’t jump on board until the higher price, but it has all been a great learning process and fun game too and we hope his stocks grow big over the next year!
They have the chance to invest in whatever company they wish, including many that make the products they love; Mattel, Disney, Nintendo, Apple, etc. This means that they get to “own” a piece of the company! Yes, it may not be a whole share with companies like Disney trading at $107 per share, but they own a piece of a share and their investment is just as real owning a fraction of one share as it is to own a whole share.
The stock market has historically had a 9.8% annual growth, which is why this is a smart way to invest, even far above a high yield savings account, and even with a low investment amount.
You have to start somewhere and you know that this idea of tiny little steps is one that we praise over and over. It is overwhelming to take a big step, which often means that you don’t.
This is true whether you are losing weight, paying off debt and even investing! We created and followed the 2% rule to become consumer debt free, $108k of debt paid fast, even though it was super small, simple steps that got us there!
We now follow the 2% rule in our health and weightloss. Alex lost 100 lbs. 3-years ago and has kept it off. He was making small tweaks in his diet each week, while increasing his activity slightly each week that led to permanent and healthy weight loss. I lost 30 lbs and have kept it within a 5 lb. range up and down for 2 years (I was pregnant when Alex started, so I am a year behind him :)).
We follow the 2% rule in business. This means we create more sustainable and successful businesses with less risks, for an ensured, gradual success and growth.
So why not in investing? If you wait until finances are perfect, if you wait until you can own an entire share, or 5 shares or 10 shares, you may never take that leap with your $500-$1000, but why not invest $5-$10 here and there?
How cool is that?
What is a fractional share?
If you know anything about the stock prices, you know that companies like the ones listed above are not $1 a share.
So how can you own a piece of these companies for as little as $1? Well, that’s where answering the question: what is Stockpile because it is also your solution to being able to own even just $1 of stocks in the form of a fractional share.
A fractional share is simply what its name infers – you are buying a fraction of a share of stock in a company. That means that is you own a portion of one share in the company. It doesn’t matter if you buy $1 in stocks or $1000 in stocks in one company. Your growth will be the same, it’s just that your return will equal that of your ownership. But $1 will grow the same as $1,000 in the same stock. Of course, we all wish we could invest so much more than we can, but we want to show you that even $1 will be an investment and grow accordingly, or at the 9.8% average growth percentage.
9.8% of $1 will be 9.8% growth. 9.8% of $1,000 will be 9.8% of growth. Granted, the profits on a larger investment will be larger, but your money regardless grows at the same rate.
We hope we are not oversimplifying, but merely to state that investing something is better than investing nothing.
We made this image to illustrate an investment in Facebook.
Stockpile for the novice, timid, hesitant investor?
Yes, this is a premier investing option for those that are beginners and those that are hesitant investors.
That $1 investment can be made in any company that is publicly traded. Stockpile offers shares in thousands of companies, including the really big ones that we all know, love and never thought we could afford to own.
That $1 investment is where the idea behind fractional shares comes in, making it easy for a novice, timid, shy investor to actually be able to invest, without a lot of risk.
It takes the sweaty palms, balmy skin, racing heart and rising temperature out of investing.
No matter your income, your social status, your lack of knowledge about the stock market, and lack of an expensive broker, you can play the stock market game.
What is the cost or fees for using Stockpile?
Everyone knows that playing the stock market game involves a risk, but often we don’t think about the fees involved in buying, selling, trading. Along with the risks, we think about the cost of the transactions. It can be expensive to play the stock market game with the fees involved.
But that is where Stockpile is ahead of the curve there too!
When you buy, sell your stock, there is a $0.99 fee for each action – it doesn’t matter how much or how little you are buying in each transaction. It is only $0.99. That’s it.
That is the extent of their fees from the buying, selling standpoint.
From there, they manage your account and portfolio. You can pay via cash, credit/debit or PayPal. Note that the only additional fee is a 3% fee if using credit, debit or PayPal for the transaction fee.
Now you will incur that $0.99 fee each action, so you will want to pick something and stick with it to let it grow. But it is a small price to pay to learn the stock market and begin investing with fractional shares. With the low fees, Stockpile makes investing actually possible.
If you give Stockpile as a gift, there is a free way and a $2.99 fee way. We share those options below.
Why everyone should own stocks
You can make a lot more money owning stock than putting your money in a savings account. Although stocks do go up and down constantly, which means there’s more risk investing in stocks compared to putting your money in a savings account, the reward can be much higher. The stock market has gone up an average of 9.8% a year over the last 40 years–way more than the 1% you might earn in a high-yield savings account these days. Obviously this is not a full orbed discussion on the subject, but there are real benefits to buying stock (for at least part of your investments).
Free Investment Education Through Stockpile
This is the other thing I love about Stockpile, you can get a free investment education that is super simple to understand, even for a child. They have tutorials, videos and lessons to help you understand how investing in the stock market works.
What an awesome tool! My kids have asked to learn and watch so they can gain a better understanding of what their money is doing as they watch their portfolios fluctuate. They have already learned a great deal of information in a short time.
Is Stockpile best for kids and teens?
The short answer is a resounding, YES.
The long answer is this:
If you start teaching your kids about money smart moves when they are young, they will have a much better chance of making intentional and money-wise decisions when they are older.
When they can understand the value of $1 in the stock market vs. that $1 pack of gum in the store, they will have a much more mature and responsible spending and saving habits as they grow older.
Alex and I personally use other programs and apps for being timid and hesitant investors and we will share about these in the future, but we use Stockpile for all six of our kids.
The thing that I find amazing about Stockpile is that they make it so super simple, affordable and achievable for everyone and you can see, in a hands-on way, what money can do. When you can visually see what is happening to your money, it dramatically changes how you view money.
This is the same idea behind using a cash system, vs. debit or credit. When you physically see the money leaving your hands, it automatically induces more responsible spending.
That’s why I like Stockpile for investing, especially for kids. You can physically see what your stocks are doing on a day-to-day basis, thus affecting the way you view and spend money.
Our kids were gifted with the FREE $5 to start. They got a gift of$5 in any company they want.
These were gifts given to them and this was our first introduction to Stockpile.
So we set-up their accounts. They have custodial accounts, which means that they are minors and need an adult to actually set-up the account and monitor the process. We were super excited to set this up for them and give this a go.
How can I give Stockpile as a gift?
The “fee way” gifting:
There are other fees involved if you are “gifting” stocks to someone else through Stockpile. You can give a gift a few different ways: send it as an e-gift to email, print-at-home, and a physical gift card.
When you “gift” stocks, there are a few things you need to know:
- You don’t need your own account to gift stock
- There is a $2.99 fee for each gift card, plus an additional 3% transaction fee if paying by credit/debit/paypal. But once you pay the $2.99 fee, your gift recipient does not have any fees at all as you are “pre-paying” the fees for them.
- You can buy a general Stockpile gift card to be used for anything, or you can buy a specific stock. But note that when your recipient redeems, they can actually choose anything.
- Your recipient can also choose to use the cash value of the gift card for a retailer gift card in the same amount. For example, if you buy a $25 Amazon gift card for someone, they can redeem it for $25 of Amazon stock, or any other stock, or $25 gift card to Amazon or any other retailer.
The options your gift recipient gets so far beyond a normal gift card, that you are giving them lots of options, including investing in their future!
If you think about it, this is one of the smartest gifts you can give. Even with the $2.99 fee, this is less than other gift card fees like the Visa, American Express or other “general” gift cards. The fees to activate these cards are $2.95 – $4.95, but you have comparatively, much less options for use!
The “Free Way” gifting:
You can give an unlimited number of free $5 gifts too
If you want to go a different route, you can sign-up for your own account HERE and get a FREE $5 to invest. This one does require you to have an account to give the free $5. But why wouldn’t you take advantage of a FREE $5 yourself and then gift the $5 to as many others as you would like?
This is the smartest thing to do.
Then, once you have your own account, you can turn around and “gift” a FREE $5 to anyone else for trying it too.
This is completely free and no fees involved for this $5 of stock anywhere. It is a GREAT way to start and try it out!
This is how we started and it was the easiest way to start and understand how it works. Since then, we have invested chunks of money here and there. Our kids are learning some amazing things and deciding where they want to invest their money.
With that, I wanted to show you what my kids’ free $5 of fractional shares has done!
I had one child that invested in Tesla (he’s a 7-year old boy and likes cars).
His stock has grown from $5 (the free $5 I gifted him) to $5.15 in one week.
Two of my kids invested in Google – my 11 year old boy and 13 year old daughter. Their free $5 of stock has grown from $5 to $5.32 in one week.
Three of my kids, my 12 year old daughter, my 8 year old daughter and my 2 year old son (I chose his) invested in Bitcoin.
This is what happened to their FREE $5 of Bitcoin stock in ONE WEEK:
Almost 100% growth!! That is $9.52 that they did not have before. The free $5 was given to them just for signing up. It didn’t cost me anything, it didn’t cost them anything. And since I have 6 kids, we have quite a combined nest egg of freebies growing!
I am telling you, there is NO REASON not to at least invest the
free $5 and play with it and watch it grow, even if you do nothing else!
How to set-up a Stockpile account
Whenever you are setting up a financial account online, you always want to know that the site is secure and what to expect before going through the process.
First, it is important to know that Stockpile is insured through the Securities Investment Protection Corporation. Similar to how a bank is FDIC insured.
Secondly, because it is a financial account, you will have to provide your SSN.
To open an account with the free $5:
- Click on the “choose your stock” and pick which company you would like to redeem.
- For example, you can search by specific company, select a favorite, choose a trending…etc. Let’s go with Amazon for our example:
- Click on the blue “pick stock” option. Then you will see this screen for whatever stock you picked:
- Click on the orange “get this stock,” then you will be directed to create your account.
- Create your account. You will be required to enter a social security number and also take a picture of your SSN and ID to upload to verify citizenship.
- Then you get to enjoy your free $5 of stock and watch it grow…hopefully. Learn some things and then start growing your portfolio.
- Once you have done this, you can also send free $5 gifts to your friends, family, kids, grandkids, etc.
What stocks should you buy?
This is a common question as there are thousands of options!
At the end of the day, the decision comes down to 4 major factors:
- Buy what you know
- Buy what you think is undervalued – you can do this by researching online.
- Buy a fund
Another benefit of using Stockpile is that you can get a very understandable education on stocks. This can help to customize and answer the questions from the list above in your specific situation.
However, here’s some other thoughts to keep in mind: Stock Buying Advice from the Pros
- Buy what you know. – Peter Lynch
- Buy wonderful businesses at a fair price with the intention of holding them forever. – Warren Buffett
- Don’t put all your eggs in one basket. – Cervantes
Watch your account grow and have fun!
Whether you are just taking advantage of the FREE $5 account start or adding more to it, the fun part is checking it from your computer or the app and watching your account grow, hopefully.
We have had so much fun as a family learning about and playing the stock market game for several weeks now with the FREE $5.
Our kids are at a point now that they want to take some of their money out of savings and invest it. They have learned a lot and really want to take their research to the next level.
We also plan to give our kids another $25 of stock from Stockpile in their Christmas stockings. Note that right now, until December 13th, the e-gift fees are 100% waived with coupon code: EARLYBIRD. So we will be doing this option and save the $2.99 in fees too. 🙂
Once you join and start your account with your FREE $5, you will be notified of sales like this too.
In the end, this is a very smart move to make no matter your age, your wealth, your knowledge of investing. Start here and start now.
At the VERY LEAST…cash in and invest the FREE $5 you can get right now. That’s all we did for the first several weeks.