GETTING STARTED   STOCKS Build a Strong Stock Portfolio Four Questions to Ask Before You Buy How to Make Sense of the Earnings Report   FUNDS Growing a Fund Portfolio Pick Funds the Right Way Time to Ditch Your Fund?   BONDS Add Balance with Bonds Bonds Made Easy MORE... TOOLS   STOCKS Kiplinger's Stock Finder Test your risk tolerance Pick the Best 'Bankerage' Company   FUNDS Kiplinger's Mutual Fund Finder Which fund is better? How do growth and income funds compare?   BONDS Which bond is better? What is my bond's yield to maturity? What price should I pay for a bond? Recent Columns An Enterprising 7-Year-Old - Feb. 3, 2005 Investing Resources for Teens - Jan. 27, 2005 Establish Money Rules up Front - Jan. 20, 2005 Save Now to Avoid Financial Aid Crunch - Jan. 13, 2005 Roth IRA Rules for Kids - Jan. 6, 2005 Parents Can't Tap Child's Custodial Account - Dec. 30, 2004 MORE ... MONEY SMART KIDS E-MAIL   Sign Up   Now you can have Money Smart Kids delivered to your inbox every Thursday. Sign up now.

MONEY SMART KIDS
Investing Books for Kids
by Janet Bodnar

I read your review of the book Stock Market Pie and decided to get it for my daughter. We read it together, and I used it as an opportunity to talk with her about the stock market. We all enjoyed the book, and it also persuaded me to take action.

My wife and I decided to give our daughter some money to invest. I will suggest a stock or two and also let her choose a few to buy. I hope she'll learn a lot about investing and saving. It will also give us a chance to talk about finances and responsibility, as well as give us "together" time. So just to let you know, you do change people's lives.

Wow! It's nice to know such a small thing can have such a big impact. Thanks not only for the kind words, but also for giving me an opportunity to segue into a review of a children's picture book that recently crossed my desk. My Dad's Job (Simon & Schuster, $15.95), by Peter Glassman with illustrations by Timothy Bush, is about a young boy who listens to his father talk about going to work to fight hostile raiders and ride bulls and bears. It sounds like such fun that he asks his dad if he can go to work with him.

But when he gets to the office, the boy starts to have doubts. What if he's wrong, he wonders. Dad's office sure doesn't look like much fun, until ... The surprise ending made me laugh out loud.

Teaching children ethics

I enjoyed your columns on teaching children ethics. You highlighted something that's often overlooked: The behavior of adults, including corporate leaders, is very much noticed by children.

As for the corporate scandals, it's helpful for everyone to understand that the companies involved in the skulduggery uncovered in the past few years represent a fraction of corporate America. That means the vast majority of companies play by the rules and serve as appropriate role models for our children.

Thanks for your observations, which I'll second. It's also worth noting that despite all the legal and government action brought against corporate offenders, the greatest punishment has come from the market itself. Investors have withdrawn more than $17 billion from scandal-tainted Janus, while "clean" companies, such as Fidelity and Vanguard, are raking in money. That's a lesson that shouldn't be forgotten.