I’d lean towards a lightning wallet. A bunch of small onchain transactions would result in a bunch of utxo’s and could end up being not worth the fees in the future.
Discussion
So a lighting would be good.... any suggestions for savings ? do they have wallets with lighting and something he can hold long term ?
There are others with more knowledge about this but that being said, id say a lightning wallet at first until enough has been accumulated to justify a nice signing device like a foundation passport, coldcard or seed signer. The lightning wallet rabbit hole is deep. (Custodial vs noncustodial, kyc vs nonkyc, etc) dive in with your kid and learn together.
I think the biggest issue I'm having is how to onboard the lighting wallet , I don't want to use my bank account.... thoughts ?
Ultimately you need to fund your lightning wallet with bitcoin, acquired by mining, purchasing with fiat or earning. You gotta have some bitcoin if you’re gonna pay out those allowances.