Rob Wherry of Smart Money.com believes that it is important for kids to see just how a small amount of money will wind up growing, as the law of compounding returns is a powerful one.

A few mutual funds are geared toward younger investors typically featuring low minimums or a strategy that is kid friendly. Monetta has a long history of marrying investments with education and in December 2006 launched its Young Investor Fund that has a financial literacy area and games for kids to win prizes. Additionally, account holders can earn 5% of their annual balance in college tuition credits that can be used at over 200 private colleges and universities.

Monetta Young Investor Fund requires a low minimum investment of $250 with the establishment of an automatic investment plan (AIP) of at least $25 per month or a lump sum deposit of $1,000.

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