PEOPLE OFTEN ask how quickly their children's money will grow if invested in this stock market.

MODEST START: "If a 10-year-old sets aside just $16 a month (perhaps with help from parents or grandparents) in a stock or mutual fund," says Dick Davis Digest, "and the youngster keeps it up for 50 years, he or she will have over $277,000 at age 60, assuming an average annual return of 10 percent -- just under the 10.2 percent average annual stock returns over the past 69 years. Amazing fact is that the 10-year-old invested only $9,600 over those 50 years to amass over a quarter-million dollars."

ACORNS TO OAKS: "Small sums can grow huge," says Money magazine. "If you put $25 a week into stocks that gain 10 percent, you'll have more than $103,000 in 22 years. The longer you stick with the systematic plan, the more dramatic are your results. A 25-year-old investing $25 a week in stocks that return 10.2 percent builds up more than $728,000 by age 65."

MISSING OUT: "Don't let world events stop families from investing small sums regularly," says Fidelity Investments newsletter. "Between 1935 and now there were at least 60 'reasons' not to put money in stocks -- wars, assassinations, recessions, foreign crises, etc. -- but if you had put just $1,000 in the S&P; 500-stock index in 1935, your investment would now be worth $660,000."

Telephone the Young Investor's Fund (nicknamed Kiddie Fund) for a free, easy-to-understand brochure, including minimum investment, fees, etc. The new toll-free phone number is 800-586-KIDS.

Pub Date: 3/24/99