Current child savings accounts are antiquated and overly regulated in an effort to drive fund to colleges and universities. Applying the existing structure for retirement savings to child savings with a tax free distribution and no restrictions on use would streamline the process of giving children options when they turn 18.
Generally this would be done by the following,
Adjust tax code to incentive child savings plans in a manner similar to retirement savings accounts.
Pretax payroll deduction to a savings account in trust to dependent to be distributed when dependent turns 18.
Allow for employer match to allow employers who offer a competitive advantage in attracting talent.
Allow for catch up contribution of some amount annually.
The benefits of this would increase the ability for young adults to have a variety of choices when they turn 18. The funds could be applied to housing down payment, seed capital for a new business, trade school/equipment, higher education, jump starting retirement savings, or pushed back into the economy through normal spending.