Exercise
Match each kind of educational savings instrument to its description
- A. CESA
- B. 529 college savings plan
- C. Prepaid tuition plan
- D. UGMA/UTMA
- E. Educational savings bond
- 1. _____ This instrument allows earnings to grow tax-free and can be used to pay for educational expenses for primary through graduate school education.
- 2. _____ Setting up this type of instrument allows the investor to avoid inflation risk by purchasing credits to pay for education expenses in today’s dollars.
- 3. _____ These instruments allow an adult to set up an account for the benefit of a minor, and although the account is not managed by the minor, it
