A crate is a combined sleeping area, housebreaker, and prevents bad habits; basically, it's one of the best investments you'll ever make for your puppy. Select a crate that is large enough to house the dog when fully grown, and insert a divider to make it smaller for housebreaking.
The reduced area should be small enough so that the puppy can't eliminate in one end and sit/sleep in the other. To make the crate a friendly place, appropriate bones (choose carefully and consult your veterinarian) can be placed within it and the puppy can be fed inside of it. Puppies should only be left in their crates for short periods initially, so that they learn that they will not be confined in them permanently.