I am trying to create a iTunes account for my younger cousin, but he does not have a credit card (he's too young). Tried Google, seems outdated on this issue.
I seem to have found a method. First i open itunes, app store and click a free app, it will prompt me to sign in or create new acc. When i create new acc i can choose Nil as a payment option. Thanks for the other methods too.
You must first go to iTunes store in iTunes then choose App Store, then select 1 free app (this is the most important steps) and try to get that app. When you try to download this free app iTunes ask you to enter your account so you must press Create New Account and fill the forms but in the Provide a Payment Method steps because you try to download free apps you see below form instead of normal form:
You must choose None for your Credit Card.
Assuming you cannot use the tremendously easier method of a gift card, which Daniel Beck mentioned:
iTunes supports PayPal, so use a PayPal account.
Whether you use/create your own account, your cousin's account or a dud account is up to you. The billing method can be changed later.
As others have said, you can create an account by first trying to purchase a free app. This is also documented at Apple's own Knowledge Base: Create an iTunes App Store account without a credit card
(I found the link above in this question: How to activate new iPad without disclosing credit card number? )
You can also create an account with an iTunes gift card. This has the added benefit of being able to purchase things after you set it up. If you ever want more money in your account balance, simply buy another "gift" card and redeem it to your account!