Those 529 college savings plans are great -- my sister set them up for her children. Of course a more ordinary CD or savings account would be good if you want to let the child build up money and then use it for something other than college.

i think that the savings account is the best option to secure a child's future.It could be very helpul for his studies and other expenditures.

CDs are great, but right now the interest rate is so low, it's almost not even worth it. There may be other places that you can invest your money in for kids that would have bigger returns. But I would suggest having at least $1000 CD. And of course, it never hurts to add to it just not making it your main saving method for your kids education. A 5 year CD right now is only at 3.24%. That's quite low. If you were to put in $1000 and add in $500 for the next 4 years you would end up with about $3342.00 at maturity date. But out of that amount you would have put in $3000. So basically, you would only make $342. That's not a lot for 5 years.

My mom gave me advice several years ago to never lock away your money into a 3-5 year CD unless the interest is at least 7%. Back in the late 1970s, early 1980s my mom made a killing on her CD when the interest rate was at its highest. I'll have to ask her, she remembers the exact amount she put in, the interest at the time, and the amount she ended up with.

After 9/11 interest rate plummeted, and even though it's recovering its been a slow process.

I would get a CD, when my boyfriend and I decide to have children I'm going to set up a CD account with $1000 in it and then every year add $500 to it so then by the time they are 18 they will have a decent amount of money for college.

hi there
i think that the savings for such a child can be done through nice insurance policies.the sum of money may be used by him for his higher studies.

It’s a great idea to set up a savings account for your child. I always had one growing up and when my parents were not skimming it, I came out pretty good.

Our local credit union allows members to open cd's with as little as $100, so shop around and see what options are available in your area. I think cds are better than savings in most cases for long term savings, but look into some of the online savings options too. Their rates tend to be pretty good.

And we have that card in the system too
https://www.financeglobe.com/Finance/card922.php

The 529 plan is very popular and is highly recommended by the "experts".

Here is some more info about it:

http://www.savingforcollege.com/college_savings_201/

Well i could say a number of ways. But the best would be to follow the parents. because children at their young age do watch their parents and try to imitate them. So if parents do activities of saving before them, it will definately inspire them. I think this could be one of the best ideas

I remember my mother setting up a savings account for me. When I was older enough, she would take me along to the bank and let me make the deposit. After a while, she would just order me to do it all by myself along with her bank account.

I would personally say try those book and audibles from mr robert Kiosaki the famous author of rich dad poor dad and smart kid rich kid. He could Give info on your kids what necessary mindset is need to be in a money industry.

I setup a saving account for my kids with my bank, its high interest rate and you have to give 90 days if you want to withdraw, its stops me or my husband raiding it

I use the savings account so that I can go in and borrow when an emergency comes up. If it was my savings account, I would not feel like I have to pay it back right away, but since it is my kids, I make sure that it is put back asap.

Susan, if you're going to open a CD, you're most likely going to need a few thousand dollars to deposit into the account. How much do you have saved up for your grandson so I can help you find a good deal?

If you have $5,000 saved up, then this is a good choice because you have a fixed 4.7% which doesn't change while your money is in the account. Plus it's a short term account which lets you withdraw money every 4 months.

Here's the link to it:

http://www.bankofamerica.com/deposits/checksave/index.cfm?template=cd_investment&context=tabpage_Features#