photo credit: bubble_gum

Maybe not in this current economic climate, but investing can be educational and fun. Teaching your kids about companies that make the ipod, princess dolls, and even the Big Mac can allow them to understand the basics of investing and wealth creation. It is so much easier to describe to your child the company that manufacturers Big Macs, since you can physically watch them being made at any McDonald’s (MCD) restaurant. They can touch it, look at it, and even taste one if they enjoy hamburgers. Some companies make products that might not be easy for kids to understand and get excited about. Take the time to find something your child is passionate about, then research the company together. If your child is older, maybe you can look at a company like Intel (INTC) or Cisco (CSCO) that make technology components. Maybe you have a teenager that must have the latest clothes style? A junior higher or high school student might look at you a little different if you started talking about the latest fall school fashion outlook at Abercrombie and Fitch (ANF) or American Eagle Outfitters (AEO). What are some other ways you can get your children excited about investing?

1. Listen to your children. You might enjoy municipal bonds funds as a safe investment vehicle that offers a good yield. On the other hand, you want to also have your children become interested in investing and muni bonds might not be exciting for them to learn about. Find out what your kids enjoy. I’m sure you know what they are asking you to buy them on a weekly basis. An ipod or maybe a new toy? This could be a great opportunity to research a company together that manufacturers the product your child wants to buy. You might be surprised how much you might learn about your kids during this stock research process. You can visit the companies website and look for the investor relations tab or link on the bottom of the site. Most companies allow you to download the prior year annual report via pdf. The annual report is full of interesting facts about the company, sales targets, goals, worldwide offices and forward looking statements. You can also create a fun game and try and find companies selling below the product price. For instance, how many shares of Apple (AAPL) could you purchase for the price of an iphone?

This week I want to look at Disney (DIS). Disney is a global brand that many kids will immediately recognize for animated movies and theme parks. Disney also runs cable channels such as ABC and ESPN. Each year it seems the studio releases a blockbuster hit that fuels demand for toys and accessories. If you have ever visited a Disneyland theme park in Anaheim or Orlando, you know that Disney is fantastic at marketing and offering an amazing experience for guests. Disney also reaches out across many age groups. Your toddler might enjoy watching a Disney show like Handy Manny on tv, while a teenager enjoys watching a Disney Miramax movie. Disney could be a good company to start discussing investments and savings with your kids. Both of you are familiar with the products and you can learn more together by researching the company and reading the annual report. See if you can learn about the other Disney parks around the world. Your kids might be fascinated to learn about unique rides in different countries.

This is the first in a series of weekly posts about kids and investments. Each week I will highlight a child friendly stock and would love to hear your stories about teaching your kids about investing.

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photo credit: killrbeez

You just found out you’re pregnant and you can’t wait to start building a family and loving new room for your baby. You might be thinking about putting together a baby registry at Babies R Us, Target, Walmart or another department store so friends and family can help celebrate your new baby. Thoughts of the many outfits you need for a newborn, crib, and changing table might give you images of excitement as you imaging caring for little junior. Maybe you’ve helped a friend shop before and the thought of picking out everything from newborn bottles to a new car seat make you lie awake at night with excitement. Have you thought to add a savings account or stock investment to your baby registry?

Picking out newborn outfits and infant bottles can be exciting for new parents, but so is the prospect of starting your child off with a solid financial footing. Wouldn’t it be nice if you could simply sign-up for an investment account the same way you purchase baby clothes or baby toys? Well, it basically is that simple. Many companies like Sharebuilder offer the ability to start an investment account for your child. You can open up a custodial account for your child in a few minutes and get them started investing earlier than you did.

The baby registry is a way for friends and family to celebrate the birth of your new baby. Parents, grandparents, and friends review your baby registry and buy items that will help you build a secure and safe environment for your little one. It’s been a few years, but here’s some of the items I remember from our baby registry:

1. Car Seat
2. Changing table
3. Crib
4. Baby bottles
5. Newborn clothes
6. Diaper champ
7. Diapers
8. Baby monitor
9. Blankets
10. Baby toys

I’ve probably missed at least 20 items, but thought I would highlight some of the most important above. All of these items are so important for a baby to prosper and thrive, so shouldn’t we also consider adding a savings account to the gift list? Imagine what this passive income opportunity could do for your new child.

With the help of my parents, I opened a 529 college saving account within a few months of my first child’s birth. Number two took a few years later, although I have since made up for delay and added additional funds. Any future cash gifts can be added directly to the 529 accounts. Having your bank account information added to your 529 account can also make the process so much easier. Automate your investments and you’ll find one less excuse to start investing as it will allow you to focus your efforts on building wealth and playing with your family.

If you don’t have the funds available to invest in stocks, consider opening up a savings account for your child so friends and family can help them save money. You might be surprised to find out that grandparents, aunts and uncles, and even friends would be interested in helping your baby start a savings account. Even an ING savings account will allow compound interest to grow over time. Imagine how much money your child could earn if you opened a new savings account within the first few months of birth. The point is to get started early and help them save money on a regular basis. Once your child’s savings account is established you can deposit any future birthday checks into the account and watch them get excited with they see the earnings grow.

What was your favorite gift from your baby registry?

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