True, but something like that could easily work as the parents having the children create accounts with Fidelity, and investing the money in something like an index fund. But I suspect "how can we make them want to become financially literate?" means they want the kids to spend a bunch of time and energy studying.

I don't know if LW or her husband have the wit to say something like "this is in addition to your birthday/Christmas presents, so the money will be there later, without you having to think about it," and not make it "you don't need new $whatever, so we're giving you an IRA instead."