No we are not condoning giving debt to the kids. Quite the contrary we want to let you know about a great gift alternative, if you are the type to give money or savings bonds as gifts.

ShareBuilder.com allows you to open up brokerage accounts with no minimum balance – and commissions are only $4 a trade. Best of all you can buy fractional shares of a company – you do not need to buy 100 shares. So instead of giving my niece Mia a $50 savings bond – I will deposit that $50 into her sharebuilder account. Hmmm… now I need to decide should I buy her 1.5 shares of Disney or 0.1 shares of Google.

I have opened 12 sharebuilder accounts for my nieces and nephews during the past four years. They all range in age from 1-8 years old. My goal is to have a mini portfolio worth a few thousand bucks in each account by the time they turn 18. It’s a great gift that can turn into significant dollars, and it is also a great way to teach younger kids about investing as they grow.

Happy holidays