Baby shower gift is paying off

One of my coworkers is having a baby shower next week (Congratulations, CV!) Planning for the event makes me think back to my own baby shower days. Friends and family gave us a lot of wonderful, useful baby supplies; however, there was one gift that really stood out.

Starting on the day of my baby’s shower, my grandparents started buying him one share of stock (K) for every family occasion. This includes his birthday, my birthday, my husband’s birthday, our anniversary, and Christmas.

This type of one-off investing is made possible by Direct Purchase Programs that allow companies to sell shares directly to investors. A partial list of companies offering Direct Purchase Programs can be found at DRIP Central. Or, if you don’t want to go it alone, there are privately held companies that specialize in helping people give the gift of real stock ownership.

While it may not be exciting for my son to continually receive the same piece of paper as gifts, I can assure you that he will appreciate it in the long run. I know I do. As the years go by, it is amazing to see how small investments over time can really add up. I also appreciate the fact that these gifts do not add to our already overwhelming piles of “stuff.” And, while I am sure there are those who think the money could be better invested, I believe that my son is learning a valuable lesson about the importance of saving.

Of course, it is important to remember that investing in stock carries an element of risk. For a more detailed analysis of your options for this type of investing, read MSN’s article titled Invest One Drip at a Time.

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.

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  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.