Perhaps the most important job of a leader is to educate and train successors. I think part of the "wisdom package" parents and grandparents impart on children and young adults must include knowledge about investing. After all, kids have the most of that one ingredient so important to investment success - time. Judging from the letters I receive from kids, the interest in investing is there. Here are two letters I received over the last year (I've used the initials of the children in both cases):

My name is E.R. I am 9 years old. I am interested in buying stocks through a stock club, but to make my decision I need to get information on which companies have DRIPs. I thank you in advance for your help.

Hello. My name is J.G. the third. I am 10 years old. I am writing to you because I want to know about buying stocks that avoid brokerage fees. You may think that I am too young for this stuff, but I am so crazy about stocks and other things that have to do with my careers. I also want to plan my careers now, instead of at the last minute. Oh, and one more thing. I am ultra excellent in math. Everyone in my class says that I'm a human calculator. I know addition, subtraction, multiplication, division, fractions, ratios, percentages, binary, pre-algebra, squares, square roots, cubes, cube roots, and some trigonometry. The reason I really wrote to you is to ask you to please send the list of stocks that avoid brokerage fees.

The upshot is that if you instill good investing disciplines in a youngster today, you will change his or her life tomorrow.

Another reason to develop tomorrow's leaders of the revolution is that they can help you today. There's no denying young people are consumers. By one estimate, teenagers spent $122 billion in 1997. As a consumer, your kids probably have important insights into products and services - insights that can be useful when choosing investments.

What's the best way to get your kindergarten capitalists up and running? I think there are two important factors to consider when initiating an investment program for kids. First, the learning process is enhanced if the child is able to invest in a company to which he or she can relate. In other words, don't expect your child to show much interest in some obscure biotechnology company. Instead, invest in a company in which your youngster uses or is familiar with the product. I'm not advocating that you invest in a lousy toy company, for example, just because junior plays with the toys.

But there are plenty of consumer-products and services concerns, which are quality investments and are familiar to your child or grandchild.

BUYandHOLD, because of its low investment minimums, provides an easy and inexpensive way for parents and grandparents to get their youngsters involved in stocks.

How the investment is registered is an important consideration when starting an investment program for a child. A parent or grandparent could merely open an account in the name of the parent or grandparent and simply earmark the account for the youngster. In this way, the parent or grandparent controls the account. However, a disadvantage to this approach is that the account holder will be taxed on the income earned in the plan at his or her tax rate.

An alternative is to set up the investment in the child's name under a Uniform Gifts to Minors Account (UGMA). Funds in the account are in the minor's name and social security number and are considered to be owned by the minor. Dividends paid on the account are taxable, most likely at a preferred tax rate. The adult custodian is responsible for the account until the minor reaches the age of majority. Any withdrawals from the account are payable to the custodian on the minor's behalf until that time. However, once the youth has reached the age of majority - 18 in many states - control of the account reverts to the child to do with as he or she sees fit. This is the downside of setting up a UGMA. Parental control is lost at the age of majority. Another consideration is that college financial aid decisions could be impacted if a child has sizable assets in a UGMA account.

It is important to understand the pluses and minuses of UGMAs before registering the investments in that form.