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Cramer: 10 Stocks to Buy Your Kids in 2010

10 Stocks for Kids Under 10

There's nothing more gratifying than seeing your child's face light up when you give them the perfect present for the holidays. Oh wait, yes there is: Seeing them succeed throughout their whole life! And guess how you make that happen? You teach your kids about money and investing as young as possible, Cramer says. The earlier you start, the better off they will be. So, this year, instead of buying your kid the hottest toy that's going to make her friends drool, consider giving the gift that cou
Cramer’s charitable trust owns BP, Honeywell International and Pepsi.

There's nothing more gratifying than seeing your child's face light up when you give them the perfect present for the holidays. Oh wait, yes there is: Seeing them succeed throughout their whole life! And guess how you make that happen? You teach your kids about money and investing as young as possible, Cramer says.

The earlier you start, the better off they will be. So, this year, instead of buying your kid the hottest toy that's going to make her friends drool, consider giving the gift that could keep on giving – stocks! Here are Cramer’s 10 stocks for 2010 for kids under the age of 10, or under 100 for that matter!

Note: All of these stocks are great examples of those that could be held over a period of several years. That doesn't mean you can afford to skip the homework. In fact, Cramer picked big names that kids are likely to recognize precisely because it makes the homework easier. If you want to educate your children about money and investing, these stocks are just what you're looking for.

Amazon (AMZN)

Chances are its fresh on your mind because you've been buying many of your holiday gifts online. But in terms of its stock, Cramer says, you can't ignore Amazon’s accelerated growth, or, in English, the fact that Amazon will grow earnings faster in 2010 than it did in 2009. Cramer thinks the earnings estimates for Amazon are way too low, especially after a great Cyber Monday this year. That means the stock could head much higher.

Chances are its fresh on your mind because you've been buying many of your holiday gifts online. But in terms of its stock, Cramer says, you can't ignore Amazon’s accelerated growth, or, in English, the fact that Amazon will grow earnings faster in 2010 than it did in 2009. Cramer thinks the earnings estimates for Amazon are way too low, especially after a great Cyber Monday this year. That means the stock could head much higher.

Apple (AAPL)

Does your child want another iPod? Cramer’s kids do. And everyone wants an iPhone. Just tack on some shares of the stock to that gift, and this company, the best way to play the mobile Internet tsunami/smartphone revolution, will certainly outlast the hits they're downloading from iTunes.

Does your child want another iPod? Cramer’s kids do. And everyone wants an iPhone. Just tack on some shares of the stock to that gift, and this company, the best way to play the mobile Internet tsunami/smartphone revolution, will certainly outlast the hits they're downloading from iTunes.

BP (BP)

BP – that's the company name, and it's the symbol. Why BP? Well, first of all you'd be crazy not to have an oil name in any truly diversified portfolio, Cramer says. BP has above-average production growth, a diverse geographic presence and one of the strongest balance sheets in the industry. Not to mention a gigantic dividend that can help teach your child the benefits of super high yields.

BP – that's the company name, and it's the symbol. Why BP? Well, first of all you'd be crazy not to have an oil name in any truly diversified portfolio, Cramer says. BP has above-average production growth, a diverse geographic presence and one of the strongest balance sheets in the industry. Not to mention a gigantic dividend that can help teach your child the benefits of super high yields.

Disney (DIS)

You simply can't get anymore kid-friendly than this company, Cramer says. Disney has good fundamentals that are getting better and a diversified media business. But even if the only link your child can make is that they like the new Princess and The Frog movie – that's a start!

You simply can't get anymore kid-friendly than this company, Cramer says. Disney has good fundamentals that are getting better and a diversified media business. But even if the only link your child can make is that they like the new Princess and The Frog movie – that's a start!

Check out Cramer’s interview with CEO Bob Iger for a full report on Disney.

Ford (F)

This company has been reinvented by its amazing CEO, Alan Mulally, Cramer says. It's the only member of Detroit’s Big Three that didn't need government life support, and it's been taking share left and right. Be careful, though, because Cramer is recommending the preferred shares, not the common stock. Mulally told Mad Money that Ford is going to be the most profitable auto company in the world, and Cramer believes him.

This company has been reinvented by its amazing CEO, Alan Mulally, Cramer says. It's the only member of Detroit’s Big Three that didn't need government life support, and it's been taking share left and right. Be careful, though, because Cramer is recommending the preferred shares, not the common stock. Mulally told Mad Money that Ford is going to be the most profitable auto company in the world, and Cramer believes him.

Click here to watch Cramer's interview with Mulally.

Google (GOOG)

Where to start? Google is the reason your children don't use an encyclopedia, and this company's long-term growth story is far from finished, as more and more advertising dollars flow online. For those of you who think Google's too expensive, Cramer says, maybe this will help: When you have a stock that's valued over $100, divide the price by 10 to make it less daunting.

Where to start? Google is the reason your children don't use an encyclopedia, and this company's long-term growth story is far from finished, as more and more advertising dollars flow online. For those of you who think Google's too expensive, Cramer says, maybe this will help: When you have a stock that's valued over $100, divide the price by 10 to make it less daunting.

Honeywell Intl. (HON)

This one's a double play on your child's future, Cramer says, because of its profit potential and the company’s focus on delivering energy efficient infrastructure to the US. CEO Dave Cote has turned Honeywell into a leaner, meaner industrial and aerospace leader, and he has the ear of President Obama, as we know from Cramer’s recent interview with Cote., along with the one .

This one's a double play on your child's future, Cramer says, because of its profit potential and the company’s focus on delivering energy efficient infrastructure to the US. CEO Dave Cote has turned Honeywell into a leaner, meaner industrial and aerospace leader, and he has the ear of President Obama, as we know from Cramer’s recent interview with Cote.

Watch that interview, along with the one where he brought a Honeywell jet engine on the set.

Macy's (M)

Cramer has thoroughly researched this retailer and its transformational CEO, Terry Lundgren. Lundgren has put what Cramer called a so–so retailer back on the map. Check out his interview with the CEO the full story.

Cramer has thoroughly researched this retailer and its transformational CEO, Terry Lundgren. Lundgren has put what Cramer called a so–so retailer back on the map.

Check out his interview with the CEO the full story.

McDonald's (MCD)

Is there a parent who hasn't taken a child to McDonald's, if only for their clean bathrooms? When Cramer was growing up the Golden Arches stood for bad food, now the menu has tons of healthy offerings. He considers MCD a stock for the ages, with a fabulous overseas business that's benefiting from the weak dollar and a generous dividend that your kids can collect for years and years.

Is there a parent who hasn't taken a child to McDonald's, if only for their clean bathrooms? When Cramer was growing up the Golden Arches stood for bad food, now the menu has tons of healthy offerings. He considers MCD a stock for the ages, with a fabulous overseas business that's benefiting from the weak dollar and a generous dividend that your kids can collect for years and years.

Pepsico (PEP)

This is another iconic brand that your child can't fail to recognize, Cramer says. Investors always want a food-and-beverage company in the portfolio as a defensive name just in case things go wrong and the economy doesn't recover as quickly. Pepsi, under the leadership of the great CEO Indra Nooyi, is one of the best.

This is another iconic brand that your child can't fail to recognize, Cramer says. Investors always want a food-and-beverage company in the portfolio as a defensive name just in case things go wrong and the economy doesn't recover as quickly. Pepsi, under the leadership of the great CEO Indra Nooyi, is one of the best.