525 plans
Section 529 plans offer a tax-advantaged vehicle for college savings.
What is advisable:

• Asking your child where she/he imagines the further education
• Considering ways you could save more for college.
• Asking people involved in this plan to help you in decision making

The best investments you can make for your child's future is undoubtedly college education . But the high cost of college may alarm you -- especially if you've waited too long to begin saving. Fortunately, there's another option for your college savings plan. Created in 1996, state-sponsored college savings plans (or Section 529 plans, after the IRS code that created them) allow flexibility in choosing a school and the opportunity for late starters to make sizable investments while reaping tax breaks.

Some details connected wit section 529:

-Section 529 plans help you invest in a predetermined pool of stock and bond investments.
-Lifetime contribution limits to Section 529 plans are not the same everywhere but often exceed $200,000, and offer some flexibility on when you can contribute.
-You may contribute five years' worth of gifts all at once, or $60,000 per beneficiary, without triggering the federal gift tax
-you may be eligible for state tax deductions.

If your child reaches college age, the account owner may withdraw money from the account to pay for qualified higher education expenses. Providing that you have acted according to the plan , there will be no penalties. If there is money left over in the account, the beneficiary designation can be changed to a sibling, first cousin or other family member of the original beneficiary without triggering gift taxes.

Advantages and disadvantages
As for Advantages:
-flexibility in contributions and college choice
-you do not have to be a resident of the state to participate
-professional asset management

As for disadvantages:
- investment risk.
- penalties are imposed if withdrawals are not used for qualified higher education expenses (generally 10% on earnings only).

So which one to choose?
Remember that Section 529 plans are one if many options you can take into account. They offer flexibility but there is still a high level of risk. However it is the best solution if your kid isn`t sure ehich college to choose or if you`re getting a late start.In case you're starting early on saving for college, it is good to consider a prepaid tuition plan as it guarantees payment of a semester's tuition for each unit that you buy, and payments may be spread out over several years. We can`t generalize because each situation is different and dependent on situation. As already mentioned you should firsts of all ask the child if he or she even plans to attend college. If so, has he or she chosen a school? Talk with your child about college, then make an appointment with your financial advisor to find the plan that best suits your needs.