<prompt> Human: Like I said, we were given 10,000 US to put towards my soon to be born daughters future education. I have no idea what to do with it. Any thoughts?  <response>: I would also recommend a 529. Depending on your state, you may get a state tax deduction for your contributions. You can most likely open one today, designate yourself as the beneficiary, and then when your daughter has a ssn, you can change the beneficiary to her.Here is a good site to learn more:And yes, if the money is not spent on qualified educational expenses, you will pay a 10 penalty and taxes on the earnings. There are some ways to mitigate this though. 