Frequently Asked Questions
Find answers to common questions about LittleShares
What should I do with baby gifts we don't want or need?
Instead of returning or storing unwanted gifts, you can convert their value into long-term investments for your child. Platforms like LittleShares let families turn gifts into stocks or savings that grow over time.
Is it better to return a gift or invest the money for my child?
Short-term returns lose value fast. Investing the money gives your child compounding growth over years. Time matters more than the gift itself.
How does a custodial investment account work for children?
A custodial account is owned by the child but controlled by a parent or guardian until adulthood. Adults manage contributions and investments while assets legally belong to the child.
Can grandparents and relatives contribute to a child's investment account?
Yes. Family members can contribute directly, making it easier to give meaningful gifts that grow instead of toys that get discarded.
Are custodial accounts safe and legal in the U.S.?
Yes. Custodial accounts are regulated financial accounts commonly used for decades to save and invest for children under U.S. law.
What happens to a custodial account when the child turns 18?
Control gradually transfers to the child based on state rules. By adulthood, the child gains full ownership of the assets.
Why is investing early better than waiting until college?
Early investing benefits from compounding over time. Even small amounts invested at birth can outperform larger contributions made later.
Is investing gift money better than using a savings account?
Traditional savings accounts lose purchasing power to inflation. Long-term investing historically provides stronger growth for future education and life goals.
What are the tax benefits of investing for a child?
Custodial accounts can offer tax advantages such as lower capital gains rates and opportunities for tax-efficient harvesting over time.
How does LittleShares help parents manage gift overload?
LittleShares turns gift chaos into a system. Instead of returns, receipts, and clutter, families channel gift value into one organized investment account for the child.
Still Have Questions?
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