Stock

My big Christmas gift this year was stock my parents got me.  While they told me about the purchase at Christmas, I am just now filling out the paperwork for it.  They of course need my signature and personal information (I assume so they can make sure I pay taxes on it), but they also have some interesting options for me to explore.  First, it asked if I would like to receive dividend checks or reinvest in more stock.  Since I am currently a student, and the dividends will not be much, I don’t desperately need the money now.  I chose the option to reinvest, always leaving the dividend checks as a possibility for the future when I won’t be under the support and care of my parents.  It also asked if I would like to withdraw money from my bank account regularly to buy more stock.  I kind of liked the idea of this option because it would take all of the work out of buying more of this stock—I would just specify the amount I would like withdrawn and they would do the rest and just send me statements.  After talking with my parents about it, I decided not to do it because I do not have a really reliable source of income.  Sure I have a campus job, but that is not a huge income, and if I go out into the work world when I graduate in a couple of months it would be better for me to save my money now instead of spending it on more stock.  Their advice was sound—take this gift and when you are in a more stable place financially you can begin to grow your investment.