The Greatest Gift: Why Ownership Beats Consumption This Holiday Season
Every December, it happens.
Credit cards heat up. Amazon trucks multiply. The pressure ramps. And well-intentioned, high-earning parents—people who dominate boardrooms and crush career goals—suddenly feel unsure standing in the toy aisle
Not because they can’t afford the gift.
But because deep down… they wonder if it actually means anything.
In years past, as my son received gifts, I asked him a simple question:
What’s more valuable long-term: a toy from Amazon… or a tiny piece of the company that built and sold it?
That question is the gateway to a different kind of holiday thinking.
One that separates consumers from owners.
The Consumer’s Trap (That Even High Earners Fall Into)
Let’s be honest—most holiday gifts are participation trophies in consumption.
You buy something. You wrap it. The excitement spikes.
Then… depreciation begins immediately.
The toy breaks. The tech becomes obsolete. The clothes fall out of rotation.
Again, this isn’t anti-gift. Joy matters. Memories matter.
But for families focused on generational wealth, the real danger is silent:
You can raise children who are elite consumers… or emerging owners. And the system aggressively trains them to consume.
Owners Live on the Other Side of the Cash Register
When you gift a share of stock or an ETF, you aren’t giving “something.”
You’re giving:
A claim on real profits
Exposure to business growth
A front-row seat to capitalism
And (most importantly) a different mindset
Consumers ask: “What can I buy?”
Owners ask: “What can I own that compounds while I sleep?”
That question changes everything.
The Compounding Advantage No Toy Can Match
Let’s run a simple mental experiment.
You gift:
A $200 toy → Joy fades, value hits zero
A $200 investment → 15–20+ years of compounding runway
That investment now has:
Time leverage
Dividends
Reinvestment
Market participation
You didn’t just give a gift. You planted a financial seed that grows while they grow.
And time—not money—is the most powerful wealth multiplier your child will ever receive.
“But They’re Too Young to Understand Investing…”
That’s exactly why it works.
Kids don’t need Bloomberg terminals and fancy financial jargon.
They need:
Stories
Visuals
Progress
Time
When a child owns a piece of a brand they recognize, wealth becomes real—not abstract.
Suddenly:
Earnings matter.
Markets move.
Growth means something.
Ownership feels powerful.
You’re teaching:
Delayed gratification
Long-term thinking
Cause-and-effect economics
That’s a curriculum no school offers.
How to Gift Stock to a Child the Right Way
Gifting investments is simpler than most parents realize. Here’s how to do it properly:
1. Open a Custodial Account (UGMA / UTMA)
A custodial account allows you to invest on behalf of a minor while maintaining control of the assets until the child reaches legal adulthood (typically age 18 or 21 depending on the state).
This is the most efficient way to gift stock to children.
2. Choose Relatable Investments
Ownership becomes “sticky” when it’s familiar:
A brand they interact with daily
A streaming service they love
A consumer product they recognize
Or a diversified ETF for broad market exposure
3. Understand the Tax Rules for Gifting Stock
Most investment gifts fall under the “annual gift tax exclusion.”
However:
The child inherits your original cost basis.
Capital gains taxes will apply when sold later.
Kiddie tax rules may apply to unearned income.
This is where strategic tax coordination matters. The goal isn’t just gifting; it’s gifting intelligently.
The Deeper Truth Most Parents Miss
This isn’t really about stocks. It’s about what role your child learns to play in the financial system.
Do they:
Spend what they earn?
Or own what produces profits?
Do they:
Chase lifestyle?
Or build a life?
Do they:
Rent their future?
Or own it?
Every investment gift, no matter how small, nudges that identity in a different direction.
Why High Earners Especially Need to Hear This
Your kids are growing up watching:
Big homes
Big vacations
Big purchases
Big freedom
But without ownership education, they may never understand why those things exist.
Consumption shows the outcome. Ownership explains the engine.
And engines—not appearances—create wealth that lasts.
One day, your child won’t remember every toy. But they will remember that:
You taught them about money early.
You gave them a head start.
You trusted them with ownership.
You built their confidence before the world tested it.
That’s legacy.
Not things. Not stuff. Not status.
The Ultimate Holiday Upgrade
This holiday season, you can still give the bike, the tech, the fun.
But pair it with:
A small ownership stake
A lesson
A conversation
A vision that outlives the packaging
Because one gift fades… and the other compounds.
Ready to Turn Holiday Gifting Into a Wealth-Building Move?
If you’re considering gifting investments this season and want to do it:
Strategically
Tax-efficiently
And in a way that helps build long-term advantage
This is exactly the type of planning we specialize in at Julius Wealth Advisors.
Ownership isn’t accidental.
It’s built—by choice, not chance.
Interested in scheduling a meeting? Call (201) 408-4644, email info@juliuswealth.com, or get in touch online.
Frequently Asked Questions
What makes gifting ownership more meaningful than traditional gifts during the holidays?
Many parents are surprised to learn how quickly most holiday gifts lose their value. The idea behind gifting ownership (such as a share of stock or an ETF) is that it provides long-term growth and teaches a mindset focused on wealth-building. Instead of a toy that fades, ownership creates compounding, confidence, and a deeper understanding of how money works.
How do I start gifting investments to my children if I’ve never done it before?
The simplest way is to open a custodial account (UGMA/UTMA) and choose investments tied to companies or brands your child recognizes. From there, you can give small amounts regularly, track progress together, and use it to spark conversations about ownership, growth, and long-term thinking.
What should parents know about taxes when gifting stock or ETFs to kids?
Gifting investments typically falls under the annual gift tax exclusion, but the child inherits your original cost basis and may owe capital gains tax when the investment is sold later. Kiddie tax rules may also apply if the account generates significant unearned income. Coordinating the gift with thoughtful tax planning helps you give ownership in the most intelligent and efficient way.
About Jason
Jason Blumstein, CFA, is the founder and CEO of Julius Wealth Advisors, an independent boutique RIA serving clients nationwide from Englewood Cliffs, New Jersey. His passion for investing began at just 10 years old, when his grandfather Julius turned off the cartoons, turned on CNBC, and began teaching him about stocks, discipline, and the values that build a meaningful life.
Shaped by early family financial hardship and inspired by Julius’s integrity and generosity, Jason built a career by gaining experience with PwC, Morgan Stanley, and J.P. Morgan. With a mission of offering transparent, education-forward planning rooted in Integrity, Knowledge, and Passion, Jason founded Julius Wealth Advisors in 2021. The firm operates in a fiduciary, client-aligned model built around long-term partnership.
Building Wealth Is By Choice, Not Chance
Today, Jason partners with High Earners, Not Wealthy Yet (HENWY) families ages 35–50, helping them build long-term, sustainable wealth through disciplined planning, deeply personal guidance, and analytical rigor he gained as a CFA® charterholder. He is known for his boutique, high-touch service, and for the educational clarity he brings to every conversation through The Big Bo $how podcast and Wealth of Knowledge blog.
Outside the office, Jason is a proud husband and father of two. He loves all sports, working out, watching the NFL (he has a complicated relationship with the Dolphins), rooting for the Mets, and staying active—a continuation of his college football days. To learn more about Jason, connect with him on LinkedIn.
Disclosures:
This piece contains general information that is not suitable for everyone and was prepared for informational purposes only. Nothing contained herein should be construed as a solicitation to buy or sell any security or as an offer to provide investment advice. The information contained herein has been obtained from sources believed to be reliable, but the accuracy of the information cannot be guaranteed. Past performance does not guarantee any future results. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. For additional information about Julius Wealth Advisors, including its services and fees, contact us or visit adviserinfo.sec.gov.