Index Fund instead of savings account for child’s future

[Kevin Robertson]

My son just turned 1.

As most people know, friends and family tend to gift money to a child on their birthday, because they do not know what is best to give them.

My wife and I want to be good stewards of this money, along with the money we put aside to invest in our son’s future (whether that’s college or not).

We have had a simple standard savings account for the money just to keep it separate, however I want to put it somewhere to give it opportunity to grow.

My first thought is an index fund through an electronic broker. Is this a good move? Any recommendations on which to go with?

The account is currently at $1000