The College Savings Plan

A College Savings Plan is a specialized investment account designed to help families save for future education expenses. Typically offered by states or institutions, these plans allow money to grow tax-free when used for qualified education costs like tuition, books, and supplies. Contributions can be made regularly or as a lump sum, and the funds can be invested in various options such as stocks or bonds. The goal is to make saving for college more manageable and efficient, reducing the financial burden when it’s time for the student to attend higher education.