There are several ways you can build capital to help your children when they enter adulthood.
College Savings Plans > 529 Plans allow you to make tax-advantaged deposits that earn returns and can be used to pay college tuition at a later date.
Whole Life Insurance > It is never too early to provide a basic guarantee for your child's future life insurance. Health issues discovered later in life could make the cost of insurance prohibitive, but a whole life insurance policy purchased at birth or in childhood will remain in force and build value for your child's entire lifetime.
Stock Funds > Since stocks perform well over long periods of time, buying into a stock fund for a child — even a teenager — can yield plentiful assets when they reach their later years.
for retirement income.
Roth IRA > An individual retirement account can be set up for any minor as long as he has earned income. Deposits into a Roth IRA are not tax deductible, but the money withdrawn from that account in retirement (at the allowable age) will not be taxed. It is a great way for teens and college students to learn smart financial planning and discipline.