re: I have a couple grand to save for my child's college education... what do?

Very good explanation here. Also note to add, its transferable. Meaning if your child so happens to get a full ride then you can transfer the 529 to anyone else for their benefit.

If you get lucky enough to were no child needs it and you need to liquidate then you'll pay 10% penalty plus tax.

Also, 529 are weighted the least amount as for the childs ability to receive financial aid.