How to Give Children the Gift of Investing

Jonnelle Marte

What present can you give a kid that will outlast the latest must-have toy or gadget? How about some stock in the company that makes it.

You can jump-start a young person's finances by giving him or her the gift of investing with stocks, bonds and mutual funds. Throw in some lessons on how the markets work -- and the common pitfalls investors face -- and you could end up giving them some financial savviness as well.

Getting kids investing early "allows them to accumulate knowledge over time on what can be a complex topic," says June Walbert, a certified financial planner based in San Antonio with financial-services firm USAA.

Individual Stocks. Does your 10-year-old nephew spend most of his free time playing videogames? Harness that interest by giving him stock in the videogame maker. A kid might be more interested in following a company's stock if it's linked to a brand he or she is familiar with, such as the company behind a favorite activity, toy, restaurant or snack food.

Posted by Jim Zellmer at November 30, 2010 1:03 AM
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