<prompt> Human: My nephew is 2.5 years old. His parents are astoundingly bad with money, and will likely be unable to save much for him in the way of a Rainy Day Fund, which is essentially what I would like to set up for him. I wont be able to contribute enough to make it a substantial amount, such as for a college fund, but perhaps a few thousand dollars to help him get a car someday or as a nice wedding present when the time comes.I would like to open some sort of savings account in my name for him. I have a lump sum of 500 to contribute initially. I am currently putting myself through grad school without student loans, so I wont be able to contribute substantially to the fund for a couple more years. But I would like to add to it here and there as I can, particularly after graduating and beginning to work in my field, at which point I could make regular contributions to the fund. I am not going to have kids, and he will likely be the only child my brother has, so I have no other children I need to take into account. I intend to take care of my nephew as much as I can.I am in school to be a therapist. In my area, starting out, I will be making around 45k. Living expenses are relatively low. Monthly rent, bills, and groceries account for about 1200month.I would like to set up a long-term, compound interest savings account that will continue to grow over the next 15-20 years or so.What will be my best options regarding compound interest savings accounts? Can I use my bank Wells Fargo for this purpose, or would I be better off using a different bank, or perhaps some sort of investment account?  <response>: Just put money aside in your name only. Anything connected to him as a minor is really connected to his parents.Cut him a check when hes over 18. The gift tax exclusion is 15,000 this year meaning you can contribute 15k without any consideration for taxes or hitting the lifetime maximum. It sounds like you will not approach this figure. Maybe the law changes in 20 years, but youll have to adjust as you figure it out.edit: This is not legal or tax advice. Please consult a professional for this. 