Investing options for nieces and nephews

[Baylor3217]

I'd like to start an account for several nieces and nephews that I maybe then kick in $10 a month for each for years to come. I have 7 nieces and nephews and would maybe start with $50 for each one.

Having never considered this, are there several options available to me (tax advantaged or otherwise)?  I'd prefer to buy a vanguard fund, but know that generally requires a coupl large up front to start.

Thoughts?
-TheBenefactor

[Baylor3217]

Are there better ideas than setting up a 529 for each of them that I contribute into each month?  I think I could then reap a little tax reward as a result.

[TrulyStashin]

What about Treasury savings bonds?  You can set up an account on Treasury Direct and funnel money there as needed.  Or if the kids are teenagers and working, you can set up a Roth IRA for them (they have to be producing income -- for my 16 y.o. son, the $ I pay him for work around the house suffices).  I'm not sure if you can set up a Traditional IRA for a child who isn't working. 

I'd shy away from 529 funds.  From personal experience, I'm not a fan.  When a kid chooses not to go to college the investment gives no return whatsoever.  The Fl. PrePaid Tuition & Dorm account we bought for my daughter in 1990 was a mere $14,000 when we cashed it out in 2009 (she refused to go to college).  We got back only the cash we'd put in.  That was a kick in the pants.  Had we invested it in the stock market, we'd have approximately $30k (give or take) instead.

529's and Education IRA's are simply too inflexible, IMHO.