re: savings for grandchild

Depending on how much you want to save, you could split the amounts between a 529 and a high-yield savings account.

I deposit a monthly amount into a 529 account for each of my kids. You'd get tax savings on the 529 account and they could roll-over unused portion to an IRA if they don't use it for college.

Then any birthday money, allowance, grade money goes into a high-yield savings account. Plan is just to switch ownership of the account to them at the time it makes sense for either a purchase or just to have in their name.