Hi KL,
A couple of ideas:
You want to make it fun for the kids. I would consider first explaining what a stock is, and then presenting the stock market as the biggest and best game there is. Then I’d tell them what you look for in a company you invest in. I’d explain compounding growth by letting them multiply $100 by 1.2 or 1.3 ten times, and then twenty times to see what that $100 would grow to in a company that could keep growing at 20% or 30%. I’d try to pick (and let them pick) companies that they are interested in, or could be interested in, even if they aren’t your first picks. You might consider making a competition between them (for a year, say) or for each of them to see how they do compared to the S&P, but warn them that growth stocks will go down more than the S&P in a down market. I’d say that one stock was too risky (you don’t want them to get in bad habits, even with limited funds). Probably 3-4. I’d pay the commissions for them at first since they have small amounts of money and the commissions would take out too big of a chunk.
That’s what I can think of for now
Saul
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