C.P.
A 529 plan is a real blessing, but it is meant for college or post secondary education only. This is the way it works...you put in money and it grows tax free. You can take it out for a broad range of expenses for college or technical school (after high school). The question parents always ask is "What if my child doesn't go to college?" The answer is that the money can be given to another sibling or even to yourself as the same type of benefit. If you need to take out the money for another use, there will be a 10% penalty so be careful that you don't plan to use these funds for other purposes.
There are other custodial accounts that are available which can be used for education prior to college. However, these are taxed (at the child's tax rate). The disadvantage for these funds is that they become the property of the child at age 18 and they can choose to buy a Harley rather than go to Harvard!
I think you get the point! If not, come back with more questions.