Once you have a savings pattern developed for your own retirement, it's only then that you should focus on saving for your child's college education. Parents, grandparents and other relatives can contribute to these plans. The money is then withdrawn to pay for reasonable college expenses such as tuition, housing, books, etc., the account is then transferred to the child's name and taxed at the child's tax rate. Contributions are easy. You cannot make choices as to how the money is invested.
Investment vehicles change every couple of years.
For example, more agressive investments are made when your child is young and investments become more conservative in the years just before the child enters college. Many state-sponsored 529 plans permit out of state residents to contribute to their plan. However, you may find that your own state 529 allows a tax deduction for contributions. Look for plans that are rated with 5-caps at Saving for College . A government-type site to compare plans is at College Savings .