Invest. Choose a plan based on when the kid will enter college, like "College Plan 2030" or whatever. They scale back the risk (equity/bond mix) as the date approaches, since volatility presents more of a risk when you're closer to needing to use the money.

Anonymous wrote:We did a prepaid and wen we got that paid off did a 529.

+1. We did this for two kids when they were 3 and 1. Bought the prepaids outright, and started 529's. Now have 260K each in 529's. Still concerned it's not enough - i feel sorry for the kids whose parents will send them into life burdened with debt due to their lack of planning or self control.