Can I use different account with my data to buy shares for my children while keeping my own account
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Let's imagine Mama Ngozi, a hardworking market trader in Onitsha Main Market, who wants to buy shares for her children to secure their future, just like you want to, dear reader.Now, Mama Ngozi may have her own personal account where she keeps her money and buys stocks for herself. She is considerinRead more
Let’s imagine Mama Ngozi, a hardworking market trader in Onitsha Main Market, who wants to buy shares for her children to secure their future, just like you want to, dear reader.
Now, Mama Ngozi may have her own personal account where she keeps her money and buys stocks for herself. She is considering whether she can use this same account to buy shares for her children while still maintaining her own investments.
To address this, we need to understand that in the financial market, accounts are usually tied to specific individuals. This means that Mama Ngozi’s personal account is linked to her identity and investment activities.
If Mama Ngozi wants to buy shares for her children, it’s a good idea for her to open a separate investment account specifically for her children. This way, she can keep track of their investments separately from her own, ensuring clarity and organization in managing their financial future.
By opening a distinct account for her children, Mama Ngozi can allocate funds for their investments separately and monitor their portfolio growth effectively. This also helps in distinguishing between her personal investments and those meant for her children, making financial planning more structured and transparent.
Therefore, to buy shares for her children while keeping her own account, Mama Ngozi should consider setting up a dedicated investment account for her children. This approach ensures that her children’s investments are managed independently, safeguarding their financial interests and fostering a disciplined approach to investing for their future.
In conclusion, by opening a separate account for her children’s investments, Mama Ngozi can effectively manage their shares while still maintaining her own account for personal investments, showcasing a prudent and organized approach to securing the financial well-being of her family.
See lessThank you ,but what I mean is having two different stock brokers registered in my name, one for my self and the other for my children
Thank you ,but what I mean is having two different stock brokers registered in my name, one for my self and the other for my children
See lessYES you can, but it is NOT the best way. Let me explain like you are 10 years old. You have 2 ways to buy shares for your children in Nigeria:- WAY 1: The Wrong Way (The way you are asking to do it) You open 2 accounts, both in YOUR name. - Account 1: With Bamboo, name = Nweda Benjamin (for yourselfRead more
YES you can, but it is NOT the best way.
Let me explain like you are 10 years old.
You have 2 ways to buy shares for your children in Nigeria:-
WAY 1: The Wrong Way (The way you are asking to do it)
You open 2 accounts, both in YOUR name.
– Account 1: With Bamboo, name = Nweda Benjamin (for yourself)
– Account 2: With InvestNaija, name = Nweda Benjamin (for your children)
Both accounts will have the SAME CHN, because your BVN is the same. The CSCS numbers will be different.
Problem:- Legally, all the shares in BOTH accounts are YOURS. They are not your children’s. If tomorrow something happens, the court will say it’s all your property, not your children’s own property. You are just labeling it in your head as “for children” but in CSCS system, it’s still yours.
This way is good only if your children are very small and you just want to separate it for your own mind.
WAY 2: The Correct Way (How Rich Parents Do It)
You open an account in your child’s own name.
Even if your child is 2 years old, you can do it. This is called a Minor Account or Custodial Account.
What you need:
– Your child’s birth certificate
– Your own ID and BVN (as parent/guardian)
– Passport photo of child
You go to a broker like Stanbic IBTC Stockbrokers, Meristem, CardinalStone, and tell them: “I want to open a minor account for my child.”
They will create:
– CHN in your child’s name
– CSCS number in your child’s name
– But you (the father) will be the one managing it until the child is 18.
This is the best way because:-
1. The shares legally belong to your child.
2. Tomorrow you can show “This Dangote Cement shares is for my son, bought since he was 3 years old.”
3. It will not mix with your own shares.
Don’t use your own data to open 2 accounts for children. Yes, you CAN do it and the system will allow you, but both accounts will still be in your name.
If you really love your children and want to build wealth for them, open a separate account in THEIR OWN NAME using their birth certificate. Put yourself as guardian.
One account for you (with your BVN), one account for your child (with child’s birth certificate).
That way, you have your own account, and your child has his own account, clean and separate.
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