Purchase a whole (not term) life insurance policy on the child as soon after his birth as possible to get rock bottom rates. The policy will build wealth while the premiums stay low and the amount of the policy can't be altered by market dips and rises.
Open a savings account with monthly compounding to launch a nest egg. As the account grows, move the money from a standard "passbook" account to money markets or CD's that require the cash to stay put for specific lengths of time to earn a higher interest rate.
Work with your accountant to learn about options for giving the child tax-free cash gifts over time. You can legally give as much as you like until you reach the $1 million cap. The child gets as much education as they like thanks to your generosity and your estate taxes decrease, so it's a win-win situation.
Invest in a 529 Fund. This savings program comes directly from the Internal Revenue Service. It was created to help moms and dads save for college by protecting gains from taxation. When the money is withdrawn, it's not subject to state or federal taxes.
Invest in the United States by doing what your grandparents did. Purchase Series E U.S. Savings Bonds. These must be held to maturity (on average, seven years), but a $100 bond costs only $50 at the time of purchase, so bonds will always be a safe investment choice.
Open a brokerage account and invest in a variety of long-term instruments. Choose from stocks, mutual funds, commodities, bonds, precious metals and other investments. If you hire a money manager, she will periodically assess your risk and move money as the economy shifts. Most financial professionals recommend diversifying, but with a long-term goal like college tuition, there's more time built into the overall savings model to make up for market shortfalls.
Put your child's education on the family plan. Pooled cash gifts from aunts, uncles, grandparents, godparents and others with a desire to invest in your child's future can maximize investment amounts, allowing you to make bigger payments on the saving plan option of your choice.
Invest heavily in your child's high school education. The best schools translate to the best opportunities for a child to shine, which in turn can mean scholarship opportunities for everything from sports to culinary arts. Having good grades is more than a great investment; it's also the kind of habit that serves a child very well whether she attends Harvard or a local community college.