First and foremost you need to figure out what the heck your intentions are. Let me explain, why are you choosing to save. Do you want to stash away money for education purposes like private school for example. Will this money you sock away for education be geared for elementary school, high school, or college? What about saving for general purposes like if your kid eventually gets married or wants a car to travel to and from home in while attending college if they commute or go to an out of state school, or just a first time home purchase. Perhaps you just want to set up a n account so they can have money set aside for them if they want to pursue a non college required career like being self-employed establishing their own business. Once you have figured out what you are saving for the next thing to consider is what type of savings will best meet your needs. There are so many savings vehicles out there and it is easy to get confused and make the worst mistake of all. Give up and not act at all. The various types of savings you could consider are ESAs known also as Coverdells, UGMA/UTMA accounts which are also called custodial account, there are also guardian and custodial accounts and 529 plans. There are prepaid tuition plans. Well I know it can be overwhelming deciding which one is best for you. There is plenty of help out there for you.
The following links below are great sources full of helpful information and are my favorites.
Vanguard College Savings Tools
College Savings Tutorial
Financial Aid Information and Tips
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