4 growth stocks I'd buy for my children if I had $5,000

Enrich your children's lives and show them how to invest for their own financial future.

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If you had socked away $5,000, not for your own luxury but for your child's future, what would you use it for?

Tuition for uni? By the time they graduate from high school, $5,000 may not buy too much with university fees forecast to rise dramatically. A down payment on a car? Save your cash and get a cheap second-hand, until they can afford one after graduating from uni.

No, the best thing is to set up a portfolio now for them. As they grow up, they can learn about investing as they watch the stocks grow and eventually take over the investments themselves. You will have passed on a wealth of experience to them along with the cash.

I'm always telling my children about companies and stocks, what to look for and how to find potential stock picks themselves. The same tips would help pretty much every investor.

1) Buy what you know

2) Does it have a strong brand name?

3) Would you buy the product or service over a similar competitor?

4) Is it growing with more businesses popping up?

Here are four good growth stocks that I would pick up now for my kids if I had an extra $5,000 and start them on their own investing future.

—  Domino's Pizza Enterprises Ltd (ASX: DMP)

The number one pizza franchise operator is still growing in Australia as well as in Japan, France and several other European countries. Dividend yield is 1.6%, but the real kicker of this stock is its projected growth.

—  SEEK Limited (ASX: SEK)

Its job search website Seek is still the market leader and earnings are still strong. Asian expansion in Singapore, Malaysia and even China will help maintain the business' strength. Its yield is 1.5%, but as earnings grow, so can dividend payments.

Santos Ltd (ASX: STO)

Having an energy stock that will benefit from two LNG projects running (PNG LNG now and GLNG soon) could give the portfolio a boost when increased revenues begin coming in. It offers a 2.2% yield.

Carsales.com Ltd (ASX: CRZ)

The leading car sales website is expanding its coverage to other kinds of vehicles and investing in similar companies in Asia and Brazil. In a number of years from now maybe your kids can afford their own car from the share returns as the company keeps up its high growth trend.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

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