Many of my clients have gone with the 529 plan. In fact, most of those who do contribute to the 529 plan are grandparents. I've got one client who contributes $50 per month for each of his five grandchildren. I always tell him I admire his generosity to grandkids. Unlike my father who gave me .25 cents on my first day of college and said, "don't use it to call me for any money".