you could score a used Squeezebox Classic 3. it has a decent built-in DAC, you can find them for $80 on ebay, and the software is free. it does have a spotify app. there are also raspberry pi based versions of it.
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John, Here are three approaches, listed in order of personal preference:
1. Apple Airport Express Base Station, $99, especially if your daughter already has Apple products.
2. Dragonfly DAC, by Audioquest? Get Version 1.2, available on Amazon for $150. Audioquest also has the cabling to go from Dragonfly to RCA. This is not wifi, but can sound great.
3. Another option is to find a used Playstation 3, $160-190 on Amazon, EBay. But I suspect other, more current solutions may be better by now.
BTW, I'm sure you daughter will appreciate such a thoughtful endeavor.
Amazon Prime TV supports various apps (not sure about Spotify exactly) costs only $99, supports hi res video and audio via standard TOSLINK output (digital outputs only though), and Amazon PRime members get various free A/V content included. I'm using it in my A/V system mainly with PLEX app for music streaming.