First, determine which 529 College Savings Plan is available in your state by going to the Saving for College website - see resources section at bottom of article for link.
Look on the right side, middle of the page - there is a yellow map where you can select your state. If you use your "in-state" plan, you may get valuable state tax deductions. Using the in-state plan does not restrict the plan beneficary to only in-state schools.
Review the 529 College Savings Plan available for your state. Some states have multiple plans, for example there are 3 plans available in Ohio:
Ohio CollegeAdvantage - Guaranteed Savings Fund
Ohio CollegeAdvantage 529 Savings Plan
Putnam CollegeAdvantage
Choose the plan that is most suitable in regards to your investment objectives and goals. Many plans have investments that are tailored to your beneficiary's age.
Open a 529 College Savings Plan with the provider you feel is best suited for your investment dollars. Please make sure that you understand all costs and fees involved with your college savings account provider. You may wish to speak to a qualified financial advisor about opening the account for you.
Fund the account and make sure to keep records of your contributions. Be certain to provide your tax provider with contribution information, as some states provide generous tax deductions.
Please be aware that you are eligible to change the beneficiary on a 529 College Savings Plan. As an example, you have $50,000 saved for your son, but he only needs $30,000 for college. You could then change the beneficiary to your daughter who might be going to college in a few years.
The gift of education is priceless but the cost of education can be very expensive! Make sure to keep your eyes and ears open for scholarship opportunities for your child.