It's never too early to get your children interested in stock investing. But for most kids, the stock market is dull and just a bunch of numbers flashing across the bottom of the television screen. So how do you pique their interest?
Get them to buy what they know.
Hanging out at the mall hasn't gone out of fashion so if your tween or teenager is going to buy the latest technology gadget or pair of jeans, teach them to profit from it.
I know it's easy to fall back on companies like Disney. Disney is a no-brainer for kids under the age of, say, 10.
But putting Disney to the side, what other options are there that kids would find interesting and, hopefully, are companies that you really would want to invest in so that the money grows?
Kids: The Ultimate Consumers
Stocks that kids are going to be interested in will be consumer-oriented. It will be technology, restaurants and clothing. Their antennas are usually firmly tuned into what the latest trends are.
Nothing separated Brooke Shields from her Calvins in the 1980s, but today's teenagers have a wealth of denim brands to choose from and are willing to pay big prices to get the "best" looks. Same thing with clothing and accessory brands.
And while technology seems to change in a blink of an eye, some tech companies are on the cutting edge of branding their products as "must-have."
These 5 stocks, and the products they make, would be considered "cool" by today's tweens and teenagers and yet also have solid fundamentals.
Tech Still Rules and Apple is King
Ever been to an Apple store on a Saturday afternoon? It's like the old record store hangouts of years past. Kids will spend hours in the store just trying the gadgets and then ask for them as gifts for birthdays and holidays.
While the iPod has dominated the teenage market, the iPhone is not as prevalent, yet, among the tween and teenage consumer. It's not that they don't want it but cost could be keeping them from purchasing it. If Apple's track record is any indication, the iPhone will soon be penetrating the teenage market in force in the coming years.
Apple (AAPL) is a Zacks #3 Rank (hold) stock. Due to the powerful rally, the stock is now at 52-week highs.
It's also now trading with a pricey forward P/E of 31.73. While Apple has been a growth story the last few years, analysts only expect year over year earnings growth in 2009 of 9.05%.
