Ensuring your children’s financial future might just begin with buying stocks for your kids. Not only will they get the advantage of compound interest by starting young, you can teach them how to make money without getting intimidated.
It starts with creating a portfolio for them and engaging them in the process along the way.
While minors cannot open an account on their own, the best brokerages have made it easy to set up custodial investment accounts as a guardian, parent, or grandparent. In fact, many firms offer accounts designed for young investors as well as webinars, videos, and articles to help them learn money management skills.
To simplify your search, we’ve compiled a list of twelve great stocks for kids to consider. We’ve included their stock symbol from either the New York Stock Exchange (NYSE) or the NASDAQ, what kids will like about them, and why they make good financial sense for grownups, too.
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Here are the 12 Best Stocks for Kids in 2024
1. Disney (DIS)
Disney stock is a natural choice for kids of all ages. Your little ones already associate it with fun movies and entertaining theme parks, and your teenagers have never known a day when Disney didn’t own the Star Wars franchise.
The Walt Disney Company is more than 100 years old and keeps growing and making money. While that makes it one of the more expensive stocks, it also means it is likely to keep producing a return. If a full share is not in your budget, consider buying fractional shares which you can accumulate over time.
Want help getting started? Check out Best Investment Accounts for Kids in 2024 for more information.
2. Apple (AAPL)
For your little one, Apple might just be the most recognizable product logo on the planet. Over 64% of American households have an Apple product, so chances are good the children in your life have at least one iPhone, iPad, or Apple watch in their home, if not more than one. So, kids know Apple, and that can make starting to investing real for them.
The iconic maker of smart electronics and streaming shows on AppleTV doesn’t just dominate market share. The company is worth more than $2 trillion — yes, TRILLION dollars! That makes Apple the biggest company in the world.
3. McDonald’s (MCD)
Imagine how big your child’s eyes will get the next time you buy them a Happy Meal and tell them they own McDonald’s! Ok, maybe a tiny slice of McDonald’s at first. But turning french fries and cheeseburgers into dollars seems like a great way to help kids understand stock trading.
With 36,000+ restaurants in more than 100 countries, it’s hard to find a place on Earth that doesn’t have a Mickey D’s.
4. Hershey Company (HSY)
Hershey Kisses and Kit-Kats that translate into money sounds like a page out of Willy Wonka! You can really have some fun helping your kids invest in chocolate they can easily find at home, their friend’s house, the movie theater, and every check-out aisle of a grocery store.
Hershey has been around for over 125 years and has demonstrated expansion and innovation to stay competitive. The share price runs high lately, but its value has been climbing steadily for the last five years making it worth considering for you kiddo’s long-term strategy.
5. Nike (NKE)
Not only does Nike make great shoes, they sell the allure of larger than life athletes like Michael Jordan, Tiger Woods, Lebron James and Cristiano Ronaldo. But the brilliance of Nike fashion and gear is that regular folks can buy it, too.
That makes Nike the $166 billion dollar brand of Olympians and next door neighbors alike.
6. Netflix (NFLX)
Kids love Netflix for more than just watching cartoons. Baking shows, documentaries, young adult dramas, and teenage rom-coms score big with young viewers. Helping kids connect all that content to an investment plan is a short leap.
The company is the original streaming service and has maintained their number one spot for years, claiming around 200 million subscribers. Their ability to reinvent and evolve their approach while other video services failed over the years is part of why stock buyers gravitate to them.
7. Hasbro (HAS)
The idea that kids can invest in toys might seem too good to be true. You can show them how to make the magic real by helping them buy stocks in Hasbro, the maker of classic characters like Peppa Pig, G.I. Joe, and Transformers.
Hasbro is THE global force in the toy world, but they also offer digital and board games, clothing and tv programs. Their shares sell for less than $100 (although this is always subject to change!), which might also appeal to grandparents and relatives who want to give a child a monetary gift.
8. Mattel (MAT)
Who doesn’t want to own a share in Barbie these days?! Mattel’s expansion into film means more and more kids are dreaming of pink houses, which can make it easy to get your little ones engaged in investing.
Mattel has had its ups and downs, but they’ve maintained a streak of success for the last few years.
9. Alphabet (GOOGL)
When you think about stocks for kids, the company called Alphabet might not pop up first in your mind. That is, until you know who they really are, the owners of Google and YouTube. Now you’re speaking your children’s language!
In fact, you’re speaking everyone’s language because there is no search engine that is better known or more successful. Despite a market capitalization value of $1.6 trillion, it’s not a perfect company, but they are known for innovation and reinvesting profits in the company to stay strong.
10. General Motors (GM)
If you’ve got a kid in your life who loves speed, introduce them to stock in General Motors. The car and truck company boasts mass appeal for car enthusiasts of brands like Chevy, Cadillac, and Buick.
You could even focus on auto-themed stocks for kids through a portfolio that includes GM and Hot Wheels manufacturer Hasbro. GM’s performance over the last several years has been steady.
11. Spotify (SPOT)
Spotify’s music and podcast platform offers entertainment for subscribers of all ages. You and your child can build playlists and portfolios all before bedtime!
If your kids prefer their Apple Music subscription, you can teach them about market share. Spotify has more than 500 million subscribers compared to Apple’s 98 million. Spotify’s long-term fate isn’t guaranteed in the challenging but growing digital music industry, but for a young investor, there’s time to monitor it carefully.
12. Amazon (AMZN)
You probably don’t need me to tell you why your kids know and love Amazon. They get it. Grab Mom’s phone. Click. Cool stuff arrives often in less than 24 hours! But what if you taught them now to MAKE money, not just spend it, with Amazon?
For the world’s third largest company to be in their investment account, you’ll need to shell out close to $150 per share, but that’s around half as much as McDonald’s. At around $500 billion in revenue and a diverse suite of services from e-commerce to original movies and streaming series, Amazon is here to stay.
Final Word on Best Stocks for Kids
Buying stocks for kids doesn’t have to be overwhelming. By focusing on companies your children can relate to, you can help them connect making money with the toys, games, food, and hobbies they already love.
If full shares aren’t quite in budget to start, consider getting started with fractional shares for as little as $10 per month. Brokerages offer fractional shares in S&P 500 stocks such as all the ones listed above.
Keep in mind, buying stocks does carry risk. Your return is not guaranteed, so it’s important to do your homework and make educated buying decisions. If you’re new to the market, check out our step-by-step guide to investing for beginners.
FAQs
Kids start forming their relationship with money from a very young age. You can give them a lifelong gift by teaching them how to manage money wisely. You also ensure they’ll have as much time in the market as possible, which insulates their investments from short-term fluctuations in the economy.
No. Minors need a parent or guardian to help them set up an investment account for kids. But reputable brokerages do offer teenagers access to their accounts via apps. Parents can (and should) monitor their activity, but teens can enjoy a sense of control and decision-making that can teach them good habits for years to come.