NEW YORK — A lesson about investing might seem as appealing to youngsters as eating a bowlful of spinach. So mutual funds that cater to children aim to make the whole process sweeter.

Backers say mutual funds aimed at kids can help instill lessons about the value of a buck beyond how an allowance should be spent or to what to do with a birthday windfall.

"I think teaching kids about low-cost investing right off the bat is a good thing for them," said David Kathman, mutual fund analyst at Morningstar Inc.

The laws of compounding interest mean that the earlier someone starts saving for something like college or retirement, the better. People who wait have to set aside much larger amounts of money later on to catch up with those who invested only a little over a greater time.

The Monetta Young Investor Fund tries to invest in companies that children are likely familiar with — including consumer favorites McDonald's Corp., Hasbro Inc. and Chipotle Mexican Grill Inc.

"The way you get kids involved is you've got to create some incentive, some spark," said the Monetta fund's Robert Bacarella.

He tries to balance making the fund interesting to kids with one that will bring solid returns.

"One of the major reasons why theme funds don't do well is that they're not diversified enough," said Bacarella.

He set up the Young Investor fund so that part of the fund would track the Standard & Poor's 500 index.

Like many other funds aimed at young investors, the fund uses an automated investment plan in return for lower investment minimums — investors agree to add a certain amount each month to reduce how much must be invested to open an account.

But even with features that cater to kids, parents should evaluate such funds carefully.

"They have their good things but you shouldn't necessarily restrict yourself to those," Kathman said.

Parents should look for funds with low fees and low minimum investments and, if they deem it important, funds that avoid investments in makers of alcohol and tobacco products.

The Vanguard Star Fund, Kathman noted, carries low fees, diverse holdings and rather than a typical $3,000 investment, a $1,000 minimum initial investment.

The T. Rowe Price Spectrum Growth fund, for those using an automatic investment plan, carries a minimum initial investment of only $50 and that amount also applies to subsequent investments in the fund.

Tom Roseen, an analyst at fund tracker Lipper Inc., says such funds help budding investors become savvier at an earlier age.

"All of the sudden they start relating to economics, to returns, to why to be invested," he said of children who might buy a pair of shoes and see the value in investing in the shoe's maker.

And of course winning over investors while they're young can be wise for fund companies.

"They know if they can win the hearts and minds, they feel they're going to have lifelong investors," Roseen said of fund managers.

Careful consideration of one's expected needs can help breed good investment practices, analysts say.

"Holding kids' interest is one part of it but also teaching them good investing habits is another thing which I think is potentially more important in the long run," Kathman said.