A. If possible, you could help your grandchild contribute to his or her Roth IRA account.
Roth IRA's annual contribution limit is $5,500, as long as the person earns that much from a job, and the money could be a gift.
If a person contributes $5,500 per year every year to a Roth IRA account from age 22, then bump up annual contribution to $6,500 at age 50, that person will have $1.5 million in tax-free money by age 65 (assume annual return of 7%).
The owner of Roth IRA account can take contribution out of the account without taxes or penalties at any time is the money is needed, for example, house down payment.
Many brokerage houses, such as Fidelity, TD Ameritrade, Schwab, have no-fee Roth service.