Not crazy about shelling out $100 for the latest snazzy gadget that might keep your seven-year-old s attention for, oh, a nanosecond? You aren t alone. These days, many parents are opting for a less-flashy but potentially more valuable gift that also serves as a lesson in saving money: a stock certificate and, of course, the stock that goes with it.

Giving stocks to children for the holidays is up roughly 20% from this time last year, says Rick Roman, co-owner of GiveAshare.com, which specializes in stock gifting. Financial advisors are also seeing the uptick in interest. We ve gotten more calls this holiday season than we ve ever had, says James Casey, president at Integrated Wealth Management, a financial advisory firm with $500 million in assets under management. And yes, when it comes to giving stock, the holiday shopping season has already started: If you want a certificate to present, it s best to order it by Nov. 15 to guarantee pre-holiday delivery of the actual certificate.

Not that an adult investor with an online account might have noticed, but stock certificates have become pretty cool. The mostly black-and-white certificates your parents collected decades ago have given way to colorful stock certificates from kid-friendly companies with images children can relate to. In addition to the standard info number of shares purchased and the date shares of Walt Disney Co. have pictures of Mickey Mouse, DreamWorks features Shrek, and Build-A-Bear Workshop is illustrated with stuffed animals. And there are more mature options like Nike, whose certificate features the Greek goddess for victory along with the company s iconic swoosh logo.

Because kids are more likely to follow a stock s performance if they can identify their investment, Disney, DreamWorks, Build-A-Bear and Hasbro are among the most popular stocks parents give, according to OneShare.com, which specializes in stock gifting and offers tips on how to get children interested in investing.

And companies like Disney and Hasbro issue dividends, giving kids an early lesson in spending and saving decisions, like whether to reinvest in Shrek, switch to Transformers or take the cash and, say, put it in the new-scooter savings account. The lesson about taxes will most likely come later: For qualified dependent children, their first $950 per year of unearned income (like dividends and interest) is tax-free; the next $950 is taxed at a rate that s usually no more than 10%, says Gary Schatsky, a financial planner.

Of course, this isn t the most efficient way to give stock. Unlike an online trade, which is done in minutes, redeeming a stock certificate can take about two weeks, and brokerage firms often charge a fee. If a certificate gets lost, it can cost up to $50 to replace it. But if the point is to get kids interested in investing, seeing a certificate instead of a ticker on a screen can really help, says Steven Rog , portfolio manager at R.W. Rog & Company, a wealth management firm. This helps kids get excited about saving and investing and it teaches them about risk and return, he says. To minimize fees, consider giving a child a stock certificate for just one share while leaving any additional gifted shares in a custodial account.

Here are the three primary ways to give stock to children along with their pros and cons.

OneShare.com or GiveAshare.com
Best for: Gifting one share of stock

If you want fanfare the colorful certificate and a free illustrated, kid-friendly e-book that lays out the basics on investing and a simple way to gift just one share of stock, try OneShare.com, a company that specializes in exactly this. It s easy and fast, but not cheap. There s a $39 fee per share. If you want to gift five shares of Disney for your daughter, you ll pay $195 in fees, more than the shares are actually worth. Some of OneShare s 200 stocks are pricier yet. Shares of LeapFrog and Steinway Musical, for example, have a $64 fee per share, because the transfer agent which tracks publicly-traded companies outstanding shares is charging more money for those certificates. And, if you re buying a share that costs more than $44, you ll have to pay at least another $34 for a frame. Even so, you might not have another option. Some companies, like Build-A-Bear, only issue them through third parties like OneShare and brokerage firms.

GiveAshare.com, which launched about six years later in 2002, also offers the same service, with similar fees. But the company has half the stock offerings that OneShare does.

Shareholder services
Best for: Current stockholders of a company

For parents who already own stock in the company they want to gift, it s wise to contact the company s shareholder services department. First ask if they re one of the companies that will even send you a certificate. Most approximately 80% to 90% won t, says Roman. Companies that offer one will usually send it at no extra cost. Then, simply set up a custodial account for a child and transfer some of your shares for free.

If you re starting fresh, it s more complicated. Parents must set up the custodial account and, usually, purchase a minimum amount of stock to get started. Only then can they gift the purchased shares. With Disney, that minimum investment is at least $250 worth of shares (about seven shares at current prices). And at Mattel, another company financial experts recommend for stock gifting to kids, that figure is $500 (about 21 shares). Both companies charge a one-time $10 enrollment fee and purchase fees of up to $5 every time you buy shares. Some companies might also tack on a per share fee of a few cents.

Brokerage firms
Best for: Gifting shares in bulk

Even if you already do business with a broker or financial services firm like E*Trade and Fidelity, this is the most expensive option for stock gifting unless you want to bestow more than a handful of shares. In general, parents will need to open a custodial account, purchase the stock and request a stock certificate just like they would going directly to the company but the broker will do the rest. There s a commission fee, typically between $8 and $10, but you ll only pay that fee per trade not per share. Parents who already own the shares they want to gift can avoid the commission fee if they transfer shares directly to the stock certificate.

Beware: Getting the stock certificate will cost you more. Your broker must go through a transfer agent which tracks publicly-traded companies outstanding shares to get that piece of paper. At E*Trade, the cost is $75, while at Fidelity it s $100 (although that's waived for clients who have $250,000 or more invested with Fidelity Brokerage Services or for people who trade more than 120 times a year).