Set up a Roth retirement account for a youngster. The money grows, undisturbed by taxes, for 50 years. The kid spends it when he’s 69.
I know the technique is underutilized because I have encountered more than one financial institution befuddled by the idea that minors can have IRAs.
A youngster can put up to $5,000 a year in a tax-sheltered retirement account, but can fund it only with dollars earned working. You can help out with the dollars, but the child has to work in a real job.