One of the best gifts you can give to a child is an investment in a stock. Not only is it a gift for his or her economic future, but it can also be a gift of financial education.

When selecting a kid stock, you should look for three things. First, the company should provide a product or offer a service that you child is interested in. Second, if the stock certificate is printed with an interesting vignette or picture, you'll have the option of framing it and hanging it in your child's room. Third, of course, the stock must have good financials.

With the holiday season upon us, Stockpickr has compiled a list of great stocks for kids.

Walt Disney (DIS) is surely one of the most popular stocks as gifts for kids, especially since it has several Disney characters, such as Mickey Mouse and Donald Duck, printed in color on the stock certificate on either side of Walt Disney. Not only is Disney a favorite of children, but it is also a favorite of Jim Cramer. The stock has a P/E ratio of 10, which is in line with the industry average; a PEG of 1.2, which is slightly higher than the industry average of 0.9; and a yield of 1.4%.

Another popular stock for kids, and another good investment, is McDonald's (MCD), which is one of the few stocks that is up this year and is given a buy rating by TheStreet.com Ratings. The stock certificate features a hamburger, french fries and two McDonald's workers. The stock has a P/E of 16, a PEG of 1.56 and a yield of 3.3%.

Jack in the Box (JBX) is another fast food company that kids love, and chances are they'll love the stock, too. The stock certificate has a picture of Jack, a hamburger, french fries and an early Jack in the Box store. According to Entrepreneur.com, Jack in the Box is great at brand makeovers. It has a P/E of 10 and a PEG of 0.7.

Kids that like Shrek will like DreamWorks Animation (DWA), because the stock certificate shows the top of Shrek’s head printed in color. In October, the company was upgraded by Jefferies to buy from hold. It has a P/E of 12 and a PEG of 1.45.

For that future capitalist, Hasbro (HAS) might be a good stock gift. Its certificate features Uncle Pennybags from the Monopoly board game. The stock has a P/E of 13, a PEG ratio of 1.38 and a yield of 2.8%.

Another game company with numerous products that kids enjoy is Mattel (MAT). The stock certificate shows kids playing with Hot Wheels, Barbie and other toys in color. It has a P/E of 14 and a PEG of 1.46. It yields is 3.8%.

For more ideas, including eBay (EBAY) and Apple (AAPL), check out the Great Stock Gifts for Kids portfolio at Stockpickr.com.

Posted on Dec. 11, 2008