Buy Young, Sell Young

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Not all children, though, understand bulls and bears. Parents who want to help seldom have experience from their own childhood. Most of them grew up in the days of the three-digit Dow, when Wall Street was a rich man's game and children's investment meant passbook savings. "My parents felt the stock market was like going to the horse races," says Kathy Boettcher, 46, who persuaded her daughter's Girl Scout troop in McHenry, Ill., to start an investment club. The lesson took so well that daughter Britt, now 14, attends summer investment camp and plans to become a securities lawyer.

Investment experts advise parents to communicate the basics--that regular contributions over a long time yield the best results. Neale S. Godfrey, author of The Ultimate Kids' Money Book and a dozen other books on families and money, warns about a fine line between today's play traders and tomorrow's day traders. "I have parents say to me, 'It's great! He sits in front of the screen five hours a day and does day trading.' My God, I'd like to know what could possibly be good about that."

Godfrey's two kids split their money four ways: charity, mad money, and medium-term and long-term investments. They have bought stocks since they were 10, and they meet with her broker, which she highly recommends. Now 14 and 17, they can choose only companies they have studied and can discuss selling only twice a year. "I think it's wonderful to have a portfolio," says Godfrey, "but you want to buy and hold."

Market historian Hirsch feels bullish. "If the kids really apply themselves," he says, "it's better than Nintendo." But real or imaginary, the market isn't just child's play. Parents provide the reality check. After all, even Nintendo can become addictive.