Both my daughters are on it as well. We are signing up the in-utero one as soon as we can. There is a lot of flexibility in them as far as what you can do with the money. If you get a kid who doesn't go to school, you can use the money on another one, or private schools, out of state schools, even trade schools. Like Salmo. G said, they track tuition, which is higher than the inflation rate.

If you are a good money manager, I believe that you could save more on the average using funds, or stocks, but for most people (me included) this is an easy way out, plus it gives grandparents something to buy for the kids instead of lots of annoying toys.