Move over, Piggy Bank: Today's Children Are Trying the Stock Market
Byline: Sammi King
The letter was much anticipated, like a winning contest entry.
It was the first bank statement.
It would not only show the culmination of baby- and dog-sitting fees, but also the profit therein from bank savings.
After ripping open the envelope, the young saver exclaimed, "Thirty-nine cents. That's all the interest I got? Thirty-nine cents."
So much for low interest rates in a slow economy.
"It's time to invest in the stock market," the young saver said. "I'll take the risk."
At 12 years of age you don't expect to hear the words, "Invest in the stock market," but today's kids are pretty savvy. They learn about running a business in sixth grade. They understand profits and losses, and the market's highs and lows.
There are options for kids who want to become stockholders. One is to invest in a mutual fund designed especially for kids.
Stein Roe investment company offers a young investor program that gets the kids interested by offering an online Internet site, www.younginvestor.com. The site is kid-oriented, complete with stock market-related fun.
Through games, kids can race a stock car down Wall Street or play stock market drop where stocks drop at a rapid rate. There are also games that teach about money and saving. All of this is a teaser for the Stein Roe mutual fund that focuses on kid-related stocks.
After a number of visits to this Internet site with his father, our young saver decided against investing in the popular fund.
"We looked at their stocks," he said. "They're not performing."
Faced with various options, the new financial whiz decided to look at individual companies. …