Potential small inheritance for child - WWYD?

[glitzy07]

I was having lunch with my MIL this weekend and she mentioned to me that H and my SS (and possibly me?) might be receiving a small "inheritance" from the estate of H's grandma who passed away in October.

She was living in a nursing home and her only asset was what was left in her checking account.  Apparently all of her children agreed to break up those remaining funds between each of the grandchildren.  My SS is the only great-grandchild but MIL thought that he was also being included in the count.

Either way, it sounds like it will be approximately $1,000 per person. 

WWYD if your 6-year-old child received something like this?  Savings account?  Open a 529? 

Just want to make sure we're smart with SS's money if/when he does receive anything. 

[macmars45]

Does your SS already have a college fund started? Sure, start a 529 if $1000 is enough to start one. (I know almost nothing about 529s.)

[drloretta]

I'd throw it into DD's college fund. We don't have a 529, just a fund that we will access for college.

[aurora]

When my parents were given $ for us kids they always put it into college accounts (not specifically 529s necessarily, but accounts they had opened with college in mind). We don't have kids but if we did I would do the same.

[Deleted]

I'd put it in his college fund.

[glitzy07]

Ok, the consensus seems to be college fund of some sort, which is what we were thinking. We don't have a 529 for him, but he has an ING savings account that has some money in it that he's gotten along the way. I'm thinking we would probably just add to this account.

Just wasn't sure if there was something else I wasn't thinking of!

[chessie]

When my great grandparents died, my parents setup 2 accounts, one for car fund and another for save to use for later- stuff like trips, etc. It was nice little treat, we decided what we would do with the money and have some extra cash growing up if we needed something.