Obviously, writing books for kids can be a goldmine if you stumble onto an idea that children and parents fall in love with. But, even if you don't want to go the traditional route of finding an agent and/or submitting your book ideas to a traditional publisher, you may still be able to write great stories for kids...and earn some money while you let your creativity flow freely.
Try starting a blog with children's stories, and monetize the said blog with Pay-per-click advertisement like Google Adsense, or take ads from kid friendly websites.
Or...another option is to look at self-publishing your children's book idea.
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