In this article, we will be taking a look at the 11 Best Kid-Friendly Stocks to Invest In.
By late 2025, long-term investing for children has expanded far beyond traditional college savings, evolving into a broader “cradle-to-retirement” financial planning approach. This transformation has been influenced by new legislation, particularly the One Big Beautiful Bill Act, as well as expanded flexibility in existing tax-advantaged accounts designed to support early wealth building.
Investing in young people has increased dramatically in recent years. Assets held in 529 plans and Able accounts increased from $508 billion in mid-2024 to over $568 billion across 17.3 million accounts as of June 30, 2025. The average 529 account balance has increased to roughly $30,960, which is a result of both increased family contributions to children’s financial futures and wider adoption.
The increasing “Roth-ification” of school savings accounts as a result of modifications made under the SECURE Act 2.0 is another significant feature. After the account has been open for at least 15 years, families are allowed to transfer up to $35,000 over the course of a lifetime from a 529 plan into a Roth IRA for the same beneficiary. The regulation greatly lowers the risk of unused education assets while promoting long-term investing from an early age, but annual Roth contribution limits still apply, and the beneficiary must have a sufficient earned income.
The One Big Beautiful Bill Act of 2025 introduced “Trump accounts,” which is a new policy development. The federal government provides a $1,000 seed contribution upon account formation for children born between January 1, 2025, and December 31, 2028. These accounts are primarily made up of inexpensive U.S. index funds and are intended to grow tax-deferred. Employers may pay up to $2,500 annually on behalf of a kid without incurring taxes, while families and relatives may contribute up to $5,000 annually. Withdrawals are typically prohibited until the recipient enters adulthood, and contributions are anticipated to start in the middle of 2026.
Youth investment is becoming more and more popular as these programs grow. According to analysts, the market for child and youth services might reach $235 billion by 2032, growing at a rate of almost 8% each year. While AI-driven tailored investment tools are assisting families in creating long-term portfolios for young investors, federal K–12 529 plan withdrawal limitations are set to rise to $20,000 in 2026.
With that said, let’s now look at the kid-friendly stocks.
Photo by compare-fibre on Unsplash
Our Methodology
For our methodology, we conducted thorough research to identify the most kid-friendly investment choices favored by investors and the broader market. We reviewed several major ETFs, including the Dow ETF, the S&P ETF, and the Vanguard ETF. From these funds, we selected stocks and narrowed our final list to companies that have recently reported notable developments that could influence investor sentiment. These companies are also widely followed by analysts and are popular holdings among leading hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
Here is our list of the 11 best kid-friendly stocks to invest in.
11. The Travelers Companies, Inc. (NYSE:TRV)
The Travelers Companies, Inc. (NYSE:TRV) is one of the best kid-friendly stocks on our list.
TheFly reported on February 18 that The Travelers Companies, Inc. (NYSE:TRV) introduced its AI Claim Assistant, which is a state-of-the-art voice service built with OpenAI’s models and APIs. The assistant uses advanced language and speech recognition to guide customers through auto damage claim calls, with plans to extend to additional lines of business and more claim interactions.
This launch demonstrates TRV’ emphasis on integrating AI, analytics, and human knowledge to expedite claims, improve customer satisfaction, and boost productivity. While claim professionals are shifted to strategic roles through a structured upskilling program, customers can access real-time policy information, receive customized guidance, and switch to digital tools for appraisals, photo uploads, and repair scheduling.
Moreover, on January 30, TRV and the National Trust for Historic Preservation advanced their national initiative, Travelers Across America which aims to focus on community resilience through historic preservation. Partnering with the Charles and Ray Eames Foundation, they are strengthening the Eames House in Los Angeles against wildfires. A roundtable at The Getty Center brought experts together to discuss cross-sector resilience strategies. The project aims to create scalable models for fire-adapted communities. The initiative also supports preservation at sites in New Orleans, Connecticut, and Minnesota, linking historic protection with broader community resilience and sustainability goals.
The Travelers Companies, Inc. (NYSE:TRV) is a U.S. insurance company providing commercial, personal, and specialty property casualty coverage sold mainly through independent agents and brokers; it’s one of the largest insurers in the United States and a Dow Jones Industrial Average component.
10. Starbucks Corporation (NASDAQ:SBUX)
Starbucks Corporation (NASDAQ:SBUX) is one of the best kid-friendly stocks on our list.
TheFly reported on March 5 that Guggenheim adjusted its outlook for SBUX and kept a Neutral rating while increasing the price target from $90 to $95. The firm lowered its FY26, FY27, and FY28 EPS projections by $0.05 apiece, but increased its fiscal Q2 U.S. same-store sales growth outlook to 4.8%.
Earlier on January 28, Starbucks Corporation (NASDAQ:SBUX) announced its first-quarter fiscal 2026 results for the 13 weeks ended December 28, 2025. The report shows that the company’s global comparable store sales increased by 4% due to a 3% increase in transactions and a 1% increase in the average ticket. Sales overseas grew by 5%, with China seeing a 7% gain. The organization added 128 net new stores, bringing the total to 41,118, of which 48% were licensed and 52% were company-operated.
According to the reports, the business’s consolidated net revenue increased by 6% from the previous year to $9.9 billion. The GAAP operating margin fell to 9.0% due to labor costs and inflation, while the non-GAAP margin fell to 10.1%. GAAP EPS dropped to $0.26, while non-GAAP EPS was $0.56. SBUX anticipates 600–650 additional sites globally, a 3%+ rise in comparable store sales globally, a comparable increase in net revenues, a little improvement in non-GAAP operating margin, and non-GAAP EPS of $2.15–$2.40 in fiscal 2026.
Starbucks Corporation (NASDAQ:SBUX) is a global coffeehouse chain serving handcrafted beverages, food, and retail products through company‑operated and licensed stores worldwide.
