How to buy shares as a 18th birthday gift?

Sunny_D · 5 June 2013 at 11:36AM

We would love to buy £50 worth of shares or make a similar investment for our godson's 18th birthday next month. We are not looking to control the investment, if he wants to convert it into cash that's entirely up to him, but we think he will enjoy watching his money grow (or otherwise!). But I can't see any way of making a purchase in his name and I assume there will be punitive charges if we buy and then transfer somehow. There seem to be plenty of investment options for under16s but surely the 18th birthday scenario is a common one? It strikes me as a good way to educate young people about money.

Doshwaster · 5 June 2013 at 11:46AM

Are you sure that an 18 yr old would want some shares for their birthday? No matter how financially sensible he is I'm sure he'd prefer something he could have some immediate fun with. Also, given the trading charges, £50 is too small an amount to be buying shares in.

quotememiserable · 5 June 2013 at 11:51AM

Yes, £50 is too little for a share purchase, dealing charges would take at least £10 to buy and to sell, so its not really a good life lesson in money management. Perhaps some premium bonds. Or I'm guess he'd be happy to accept the cash.