Just saw you deleted the message, I'll leave this here in case it helps:
I'm also having my first kid soon. It's my understanding that your child is eligible for more financial aid if savings are not in his name. Always max out your own tax-advantaged accounts first, especially a Roth IRA for you and your wife. You can withraw any contributions tax and fee-free to pay for college (to pay for anything actually). Also I think (feel free to correct me) that money saved in parents' retirement accounts doesn't count as much against your child as parents' normal savings when it comes to getting financial aid.
$5k is perfect to start a Roth IRA if you don't have one yet. Do you and your wife already have them set up?
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