Our 3 Stocks To Gift Kids To Help Set Them Up For Life

Whether it's for the holidays, a birthday, or just because, if you want to give something with real impact — something that has the potential to set them up for a life of independence — then in our humble opinion, stocks are hard to beat.

For one thing, they teach kids about financial literacy… things like compounding, the value of a dollar, what companies actually do, how to handle market volatility — these lessons can help set up your kid or grandkid for success long past their childhood

But they can also create financial security and freedom, something every parent wishes for their child.

Consider this math.

If you gave $500 worth of shares every year from ages 7 to 18 and get an average annual return of 8%, your child could have $9,489 by the time they turn 18.

Or if they waited until they're say 34, they'd have $32,509, assuming you didn't give them a single cent after their 18th birthday.

If you started even earlier, say on their first birthday, with the $500/year investment, assuming an 8% return, it'd be worth $20,723 by their 18th birthday and $70,996 by their 34th.

Think of the opportunities and advantages this sets up for your kid or grandkid. What kind of future could they have with this kind of head start?

Now imagine if you could increase that return so the money you invest now will be worth even more down the road….

That's exactly what we try to do at the Motley Fool. Help everyday investors find the best possible stocks for their portfolios, so they have every chance of making those financial dreams a reality.

We've compiled a list of three shares you could potentially buy for your kids now to help set them up for success later in life.

Each of these companies have been hand picked by our team at Motley Fool Share Advisor, to provide what we think could be the best long term prospects for years to come.

We're giving this list away for free to Share Advisor members today. And with our 30-day membership-fee-back guarantee, you can check out the report and the service to see if it's right for you and your family!

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The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. For more information about The Motley Fool see our Financial Services Guide. All returns cited are hypothetical and based on the percentage change between the stock price at the time of recommendation and the current or sell price (if the position has been closed) at the time of publication. Brokerage, taxes and any other associated costs are not taken into account. Please remember that investments can go up and down. Past performance is not necessarily indicative of future returns. Performance figures are not intended to be a forecast and The Motley Fool does not guarantee the performance of, or returns on any investment. Any money back guarantee is strictly limited to the subscription price paid for the product.