<prompt> Human: So, my grandfather gave me 1000 for my newborn son to start saving for him. Other people have given me money for him too, and Im trying to figure out the best thing to do with this money. My first thought was to start a 529, but I understand that there are so many options for him such as loans, grants, and scholarships in the future. Plus, Im from MA so it wouldnt be state tax deductible. My next thought was to maybe just open a high yield savings account through Ally or somewhere with good APY so he could eventually have this money for a car, house down payment, etc... Im still not fully decided, and I just really want to figure out what the smartest way is to grow this money for him. Any help from fellow personal finance parents would be greatly appreciated.  <response>: I would suggest 529, he can use it tax free for schooling and taking out loans for school suck. Best thing you can do to get your kid ahead is get him an education.Otherwise stick it in a mutual fund. Better returns than savings account. 