“Give a man a fish and you feed him for a day, teach a man to fish and you feed him for a lifetime.”
Although this quote’s origin is not known for certain, it remains one of my favourite allegories.
It’s also a phrase very relevant to the world of investing. I think one of the greatest gifts we can give our children is a sound financial education. The benefits of starting to save and invest at a young age are massive compared to giving it a go 10 years’ out from retirement.
And what better way to encourage a young one in the ways of money than gifting them a piece of a company?
If you agree, here are 2 ASX shares that I think would be perfect for a Christmas present this year.
Vanguard Australian Shares Index ETF (ASX: VAS)
Our first share isn’t really a share at all – it’s more of a Christmas hamper. Exchange traded funds (ETFs) work by holding a whole bunch of shares in a fund and trading shares of that fund on the ASX. VAS is what’s known as an index fund, meaning it follows the largest 300 companies on the Aussie stock market in a dispassionate, size-weighted manner.
Thus, I think it would make the perfect ‘no-stress’ gift for kids – as they would literally own a piece of all of the biggest companies on the market today. That’s everything from Commonwealth Bank of Australia (ASX: CBA) and Telstra Corporation Ltd (ASX: TLS) to Afterpay Touch Group Ltd (ASX: APT).
As a parent, you don’t have to worry about which companies to buy – and your kids will love owning the ‘entire market’, I’m sure. Since you’ve got all the biggest companies automatically included in one share, VAS is also the kind of thing you can buy and never sell – my favourite kind of investment.
Coles Group Ltd (ASX: COL)
If you’d rather go down the individual shares route, I think Coles is a great alternative. Everyone knows Coles, its brands and how it makes money, which I think is one of the easier business models for a child to wrap their head around.
Additionally, you can easily take your kids on the next shopping trip and show them the stores that they have a partial ownership of – something I think any kid would respond well to (they may even want to help out with the shopping!)
I think its fairly safe to say groceries aren’t going to go out of fashion anytime soon either, making this a pretty safe investment (in my opinion). For all these reasons, I think Coles would be a great choice for your kids’ Christmas stocking too!
If you’re considering buying some shares for your kids – as either a learning tool or an investment – I think these 2 ASX choices would be a great place to start looking. Christmas can be about learning as well as all the latest toys, after all!
The post 2 ASX shares you can buy for your kids this Christmas appeared first on Motley Fool Australia.
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Sebastian Bowen owns shares of Telstra Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019