College Savings Plans

Here's a site to read about 529 Plans
College Savings Plans Network
Some of the features of 529 college savings plans.

• ability to save huge amounts of money toward college. Maximum contribution allowed is over $300,000 in some states.
• minimum investment as low as $25
• earn market-based returns instead of inflation-based returns
• tax deferred growth and tax-free withdrawals as long as money is used for education expenses. 
• Money can be used for tuition and room & board (pre-paid tuition plans only cover tuition)
• 529 plans can be used for any school in the country. Pre-paid tuition plans are only good for state schools in that state)
• Money can be used for grad school.
• No age limit.
• If one child decides not to go to school, you can change the beneficiary for another child (or that child's child). Flexibility!
• 529 plans are considered to be owned by the person who establishes the account (not the children)
• a way for grandparents to help grandchildren with college savings (talk to a financial adviser to see if this is a good move for your situation)
• Any withdrawals not used for education are subject to income taxes and a 10% penalty.