New Canaan, CT-based. woman owned Catherine Avery Investment Management (CAIM),LLC announces their holiday stock picks for kids and explains why investments for children are so important.
Online PR News – 05-December-2010 – – New Canaan, CT – Catherine Avery Investment Management (CAIM), LLC has announced their holiday list of stocks for children. The New Canaan-based, woman owned investment firm believes investing in companies can make a compelling holiday gift for young people: children, grandchildren, nieces and nephews, for a number of important reasons.
“There are a couple of immediate and compelling reasons to consider the idea of investing in stocks for children,” says Catherine Avery, owner of CAIM, LLC. “Investments help promote financial literacy and lay the foundation for future savings.” Avery notes that one of the best gifts adults can give the children in their lives is the gift of financial independence and it’s always best to start early as it sets a precedent.
“With children the key is repetition – introducing them to companies that have products they can relate to and talking about them throughout the year reinforces the idea that they have a vested interest.”
Avery explains that buying stocks for children is also a great opportunity to teach them about money on a practical level. Stats show that the average high school graduate lacks basic skills in personal money management. Many of them cannot balance a checkbook and have no understanding of basic concepts involved with earning, spending, saving, and investing. Avery believes that parents can play an active, positive role in shaping their children's future simply by involving them in every day, real-world money transactions from the time they're young, and that includes investing.
“Sitting down with them at the end of the year and going over their portfolio, they might not get it at first but as you repeat the scenario for 5, 7 or 10 years, they will begin to understand,” she says.
CAIM emphasizes three key elements when selecting investments for children. They advise choosing companies that have products kids can relate to. They recommend companies that have a history of paying dividends and, finally, they suggest selecting companies that are attractively priced based upon the company’s fundamentals.
“Of all the gifts we normally give, how many actually have a permanent lifespan?” asks Avery. “Wouldn’t it be nice to be able to give our children, or our grandchildren, nieces and nephews something with a meaningful and permanent impact?”