Making investing as easy as child's play; here are fun ways to teach your kids about building wealth: Danielle Flythe has learned the value of investing at a young age. (Black Wealth Initiative).

DANIELLE FLYTHE OF WASHINGTON, D.C., BELIEVES every investor should follow these four rules: "Start investing early; teach your kids it's never too early since we are consumers; contribute to your investments on a regular basis; and reinvest your dividends."

This is the philosophy that landed the 17-year-old first place in the sixth annual Stein Roe Young Investor national essay contest. The competition, which is open to students from the fifth to 12th grade, awards $34,000 in Stein Roe Young Investor Fund (SRYIX) shares to finalists. From more than 1,000 entrants, three winners are chosen in four grade categories. Flythe, who coincidentally received shares of the fund last year as a Christmas present from her parents, snared the top prize of $5,000 in the 11th to 12th grade category.

One of the reasons Stein Floe (www.steinroe.com) sponsors the essay contest is to communicate with its young shareholders, says David Brady, portfolio manager of the fund. It does so by publishing two quarterly newsletters: Dollar Digest for preteen investors and It's Your Money for teen investors, who are allowed to submit questions to company CEOs to be answered and published in the magazine. The fund is made up of companies that sell products and services that appeal to, or affect the lives of, young people. For those who do not enter the contest but are still interested in investing, the minimum initial investment can be as low as $250 if you agree to contribute $50 each month.

Flythe has been an avid investor since the age of 3 when her grandmother opened a custodial account with $100 worth of McDonald's (NYSE: MCD) stock in her name. Since then Flythe has added General Electric (NYSE: GE), The Limited (NYSE: LTD), EMC (NYSE: EMC), Microsoft (Nasdaq: MSFT), Yahoo (Nasdaq: YHOO), and Mattel (NYSE: MAT). As of June, her portfolio was worth a little more than $13,000, after losing about $22,000 in value since Sept. 11. But Flythe isn't worried. "Because I am a long-term investor, I have faith that the market will come back up," she says.

Young people like Flythe who are exposed to the concepts of saving and investing at an early age are more inclined to stick with them as adults. This is why it's crucial for parents to adopt and adhere to principle No. 6 of our Declaration of Financial Empowerment (DOFE): to teach business and financial principles to my children.

Financial literacy can be intimidating for adults and children alike. "Learning together as a family is a wonderful bonding activity," says Brady. Here are some ways to make money management fun and exciting for the entire family.

* TALK ABOUT MONEY

Tammy Mallay, youth education director for the Atlanta chapter of the National Association of Investors Corp. (NAIC), says set aside a couple of hours regularly to go over the family's finances with your children. Explain how time is on their side. For example, a 10-year-old who purchased 100 shares of Wal-Mart back in 1982 at $18.50 per share, with dividends reinvested, would be a 30-year-old millionaire today, with $1.36 million as of 1999.

Brad Dodson, a master trainer with YoungBiz Better Investing summer camps (www .youngbiz.com), says teach young people to invest for the long-term and to save for short-term goals such as paying for a senior-year high school trip.

* PLAY STOCK GAMES

Check out the Take $tock board game (www.takestock game.com), in which players each start with $150,000 in cash and have opportunities to buy stocks that they land on as they move around the board. The board is segmented into sectors such as retail, finance, and high tech. Ownership of all three stocks within any sector results in the formation of a mutual fund. Also, get your child's school to participate in the Stock Market Game sponsored by the Securities Industry Foundation for Economic Education (www.smg 2000.com). Students from grades four to 12 are given a hypothetical portfolio valued at $100,000, which they manage over a period of eight to 15 weeks.

* SETUP A "PARENTAL 401(K) PLAN"

SIFEE Executive Director Robert Strong suggests parents act like a 401(k) administrator for their child. "Say a child manages to save $10 a week, the parent would then match that amount with $5. The idea is to introduce children to how savings can begin to work for them," he explains.

* HAVE YOUR KIDS JOIN OR START AN INVESTMENT CLUB

They will learn how to pick and track stocks like the pros. Investment clubs also provide structure and discipline. For more information, contact the NAIC at www.better-invest ing.org or 877-275-6242.

Strong says parents should also take their kids on field trips to stock exchanges and shareholders' meetings. When you visit your broker or banker, take your children with you. Don't get discouraged if they don't show an interest at first, continue trying different things and see what happens!

Declaration Of Financial Empowerment

From this day forward, I declare my vigilant and lifelong commitment to financial empowerment. I pledge the following:

1 To save and invest 10% to 15% of my after-tax income

2 To be a proactive and informed investor

3 To be a disciplined and knowledgeable consumer

4 To measure my personal wealth by net worth, not income

5 To engage in sound budget, credit and tax management practices

6 To teach business and financial principles to my children

7 To use a portion of my personal wealth to strengthen my community

8 To support the creation and growth of profitable, competitive black-owned enterprises

9 To maximize my earning power through a commitment to career development, technological literacy and professional excellence

10 To ensure that my wealth is passed on to future generations