Jahnavipat- I totally agree with you. I just want to say that an easy way for children to invest in stocks by buying shares directly from the company.
This is called a dividend reinvestment plans or Drips. These plans allow investments as small as $10 that actually goes toward equity in a stock purchase.
Most companies have intermediaries that handle these purchases. It is very motivating for a child because they receive statements and information that any stockholder would have. The only thing is that the parent has to sign on with the minor child.
This is how the program works. For example, if the child wanted to buy a share of Coke Cola, they would go to the Money Papers online and type in the symbol KO for Coke Cola.
The parent would then learn that that stock required a minimum investment of $50, along with its current stock price and potential fees. Over time it is among the best ways to save money for kids.