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Put some in a 529 account. Most states have decent investment options, but check yours. The earnings grow tax free and it's not taxed on withdrawal if used for education.
Some don't like that it's locked to education, but that's the best gift you could give. Even if your kid gets scholarships, the $ can go to living expenses or grad school. Or transfer to someone else, if (god forbid) child can't go to higher ed for some reason.