We have been paying our four kids a small allowance. We help them split their money by percentage into different categories (savings, investment, responsibility, school, play, etc.) One of the categories is "investment" which so far has been put into a savings account. Now that they have a little bit of money collected there (a couple hundred total), I thought it might be a good idea to help them be more actively investing it.
I did some real estate investing a while back, right before the bubble popped, so it didn't turn out too well. I purchased stock and options at companies I worked for, but those never paid out either. I've also done some investing on Prosper, which did OK. My point is I am not a sophisticated investor, but would like to start my kids on a good path.
So what is a good investment to introduce kids too? It is OK if it isn't 100% safe (nothing is) since I will encourage them to diversify into multiple investments, so if one fails they can see it as a learning experience, but I don't want them to loose it all. I'd also like something that they can be involved in, where we can check on it from time to time to see how it is doing, then maybe make decisions on how to improve the investment.
This will also be a learning experience for me as well. Suggestions?