Exercise

Match each term to its description.

1. A. CESA
2. B. 529 college savings plan
3. C. Prepaid tuition plan
4. D. UGMA/UTMA
5. E. Educational savings bond
6. 1. _____ This instrument allows earnings to grow tax-free and can be used to pay for educational expenses for primary through graduate school education.
7. 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.
8. 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