You can apply the same principle to your children's savings accounts. For every dollar they put into the bank, you could put in 50 cents. Several child-oriented mutual funs are now available. These funds issue enrollment packets that explain investment basics through kid friends newsletters and interactive materials. Also, these types of funds invest in names that are well known to kids, such as McDonald's, Disney and Nike.
Many children get a kick out of owning small pieces of familiar companies.
Just have everyone in your family choose a stock to follow for a month or so. At the end of that time, award a small prize to the person whose stock has done the best. You'll want to keep all explanations fairly simple, but don't underestimate your children's ability to grasp fairly sophisticated concepts. Remember, children love to learn - and they're often better at it than adults. Set a good example This may be the most important thing you can do.