Mutual Funds for Kids

Teenagers are offered a more sophisticated version of the kit and have the chance to enroll in a stock market game, in which they each receive $100,000 in "Monetta Bucks" that they have to use to construct a portfolio with any combination of stocks from the Dow Jones Industrial Average.

At the end of six weeks the first-prize winner gets to choose either a certificate for one share of stock or a $75 gift card to Best Buy. There are smaller gifts for other winners.

"Its all about getting the kids involved," Bacarella says, adding that the idea is to educate kids about investing while creating a level of entertainment.

"We are the only company that reaches out to the kids [in this way]," Bacarella says. "We are making a valiant effort to try to get kids to understand about investing. We are teaching them how to save, how to set a goal and reward them for meeting the goal. ... We do it in a fun way, through games and activities."

There are a few other funds that are considered kid-themed including American (TWGTX Quote)Century Giftrust (TWGTX), (SVLAX Quote)SunAmerica Blue Chip Growth Fund (SVLAX) and (UFSGX Quote)USAA First Start Growth Fund (UFSGX).

Monetta also has a program to help pay for college. Through a partnership with SAGE Scholars, which has agreements with 200 private colleges and universities, Monetta investors can earn up to 5% of their account balance in tuition credits that can be applied to any of the schools in the SAGE program.

The credits can accumulate to as much as one year's worth of tuition, though there are restrictions in how they can be used. For instance, they have to be used over the course of four years. Bacarella says the credits are not taxable and they don't affect the student's financial aid package, as they are basically a reduction of tuition.