Best Stocks for Kids

Teaching children money management when they’re young conditions them to be responsible with money as adults, and the stock market can be a great way to show them the power of sensible investing. That's where our list of the best stocks for kids come into play.

These are stocks from companies that most children would have heard of, so you can teach them the core principles of investing -- like following Warren Buffet's lead, who purchased his first stock aged eleven, of knowing and even using products from the the brands you're investing in.

The Best Stocks for Kids

Getting kids to wrap their minds around investing and its long-term benefits can be tricky. Telling them that they will be owners in cool companies by buying shares will make investing more appealing to them. To help, we've compiled a list of kid-friendly stocks that could prove to be great investments.

The Walt Disney Company

Kids love entertainment, and Walt Disney Co. (NYSE: DIS) provides it globally. The company offers media networks, parks and products. It produces movies and offers streaming services through Disney+, ESPN+ and Hulu.

The company operates parks and resorts such as the Walt Disney World Resort in Florida, Disneyland Paris and Hong Kong Disneyland. The entire family can experience the magic of Disney on the sea as the company offers Disney Cruises — a luxury ocean liner that incorporates entertainment found at its parks.  

The Walt Disney Company also sells merchandise of all the favorite Disney characters such as Mickey Mouse, Cinderella and Buzz Lightyear. It publishes comics, books and magazines. 

Amazon

Besides being one of the biggest global companies, Amazon.com Inc. (NASDAQ: AMZN) makes online shopping convenient. You can buy almost any product on Amazon — computers, books, phones and t-shirts.

The company also provides entertainment — Amazon Kids+ features kid-friendly content. It lets them access apps, games, and music. Kids can stream TV programs and download movies. Amazon owns Audible, which kids use to listen to audio of their favorite books.

Besides a wide range of toys and electronics, Amazon offers fast delivery. Kids don’t have to wait long to receive their orders.  

Apple

Apple Inc. (NASDAQ: AAPL) is the biggest company in the world by market capitalization — $2,694 trillion. The company designs and manufacturers smartphones, computers, tablets and wearables.

It’s responsible for producing some of the world’s most successful electronics such as the iPhone, Mac, iPad, iPod and AirPods. The company also produced the Apple Watch. Parents can set it through the iPhone, enabling kids to connect with family and friends through phone calls.

Apple’s App Store lets kids download all the major apps, and FaceTime enables them to see their contacts. The company also provides entertainment. Apple TV+ is a subscription streaming service that offers original films and television series. Its most popular kids programs are Doug Unplugs, Fraggle Rock and The Snoopy Show. 

Alphabet

Video platforms have become popular, and Alphabet Inc. (NASDAQ: GOOGL) owns the biggest one in the world — YouTube. Alphabet was the fourth largest global company by market capitalization in 2021 and also owns Google, the world’s biggest search engine.

Google Play Family Library lets kids access family-friendly content such as games, apps, movies, books and TV shows. Kids Space lets kids enjoy content based on their interests, whether it’s animals or art projects.

YouTube Kids is a contained environment, ensuring parents that the videos kids watch are appropriate.  

McDonald’s Corp. (NYSE: MCD) is the largest burger chain in the U.S. Kids love the Happy Meal, but they’re even more excited about playing in McDonald’s play spaces.

The reason most kids love the Happy Meal is that it contains a toy or a book. Some of the most popular toys McDonald’s offers are Mario, Fraggle Rock, Inspector Gadget and Teenie Beanie Boos. McDonald’s announced that the Sing 2 cast is starring on the Happy Meal.

The company also offers Creative Play — kids use sheets, coloring and puzzles such as Ugly Dolls challenges and Dancing Dot to Dot to entertain themselves. 

Source: Meghan Hessler on Unsplash

Hasbro

Hasbro Inc. (NASDAQ: HAS) is a global entertainment and play company that offers toys, board games, television and gaming. Its independent studio, eOne, publishes programs such as Power Rangers, Transformers, Peppa Pig and My Little Pony.

Hasbro offers tabletop and digital games through Wizards of the Coast. Some of its most famous products are Dungeons & Dragons and Magic: The Gathering. Wizards of the Coast makes gaming possible on PC, mobile and consoles.

Besides apparel, Hasbro also offers toys and action figures such as Nerf, My Little Pony and Transformers. 

Netflix

Netflix Inc. (NASDAQ: NFLX) is the most popular subscription streaming service in the world. The company has more than 222 million subscribers and reported a $30 billion revenue in 2021.

The company offers various programs, animated films and cartoons. Some of the shows that kids love on Netflix are The Garfield Show, Lego, Last Kids on Earth and Avatar. Netflix enables kids to watch their favorite programs on TV, mobile devices and PC.

Netflix partnered with Walmart Inc. (NYSE: WMT) to create the Netflix Hub. It’s a digital storefront that offers dolls, playsets and merchandise inspired by shows such as Waffles and Mochi, Adat Twist and Scientist.

Nike

Nike Inc. (NYSE: NKE) is the biggest sneaker company in the world. One of the reasons for Nike’s dominance is its massive budget for endorsing the most popular athletes. Some of the athletes signed with Nike are Cristiano Ronaldo, LeBron James, Rafael Nadal and Michael Jordan.

Besides sneakers, Nike sells hoodies, t-shirts, caps and tracksuits. Nike’s kids apparel features popular shoes and gear. Nike KIDS Camps focus on developing foundational athletic skills for 5- to 8-year-old kids, practicing sport and athletic fundamentals like running, jumping, catching, throwing, kicking, dodging and balancing through fun drills and games.

Because Jordans are Nike’s most popular sneaker range, the company designed a Jordan kids’ collection.

Tesla

Tesla Inc. (NASDAQ: TSLA) is the world’s biggest car company by market capitalization — just over $893 billion. The company’s mission is to provide the safest and most environmentally friendly cars. Tesla’s entertainment features lets kids access and video stream YouTube, Netflix, Twitch and Hulu.

Although Tesla focuses on manufacturing cars, it made a product specifically for kids — Cyberquad for Kids. For $1,900, the Cyberquad lets kids enjoy offroad fun on a four-wheel ATV with a full-steel frame, cushioned seat and LED light bars. A lithium-ion battery powers the ATV up to a 15-mile range and reaches a top speed of 10 miles per hour. 

Source: Tesla Fans Schweiz on Unsplash

Can Kids Invest on Their Own?

Kids cannot invest by themselves. They need to be 18 years or older to open a brokerage account. Kids need a custodial account, which parents or guardians open on their behalf. 

An alternative to a custodial account is for parents to invest a portion of their portfolio in kids stocks. Saving for kids by opening a separate account for them in the parent’s name is an option. 

Parents can teach their kids portfolio management and monitor their rebalancing (adjusting a portfolio to restore allocations and risk levels). The parents’ guidance will train kids to manage their portfolios themselves at the legal age.  

Benefits of Investing for Kids

Besides wealth building, teaching your children to invest benefits them several ways.

Learning good habits: Kids develop habits at a young age, and some stick with them for life. Teaching them responsible financial habits may spill over into other areas of their lives and help them understand responsibility and the consequences of poor decisions.

Understanding finances: Most schools don’t teach financial management; it’s the parents’ responsibility to do it. If children don’t receive financial education when they’re young, they may learn it when it’s too late. That puts them at a disadvantage over other children. 

Saving for the future: By teaching your kids to save for the future, they’ll be financially independent sooner. The savings will help them fund unforeseen expenses, and they’ll be prepared for changes such as losing their jobs. Their savings will ensure they have a comfortable retirement.

Exploring potential career paths: Investments serve as a financial backup net. They allow kids to explore different career choices and not get stuck in a job they hate because of fearing a loss of income to pay bills. Your kids may find investing appealing, resulting in their pursuing a career as a trader or a financial advisor.

Compare the Best Custodial Accounts for Kids

Finding the best broker for your kids to invest with puts them on the right track. Benzinga compiled a list of the best brokers that’ll help your kids get a head start.

Frequently Asked Questions