Question

paying for college
use the information below to answer the question.
for students who plan ahead for college, the 529 savings plan is another option worth exploring. this plan allows individuals to save money for college without it being subject to taxation. contributions can accumulate over time, offering a financial cushion for future educational endeavors.
scholarships are another avenue for financial support. scholarships come in various forms, including local, academic, and career - specific awards. local communities often offer scholarships based on various criteria, and it is essential for students to actively seek out these opportunities. colleges themselves frequently provide scholarships based on academic achievements, club participation, and major - specific criteria. therefore, inquiring about available scholarships during college interviews is advisable.
furthermore, colleges often have their own scholarships, some of which students may not even be aware of unless they inquire directly. some institutions may offer discounts or financial incentives for local students.
what is the purpose of a 529 savings plan?

• to save money for a vacation
• to save money for college without taxation
• to save money for retirement

Explanation:

The text states that the 529 Savings Plan "allows individuals to save money for college without it being subject to taxation". The other options (saving for vacation or retirement) don't match the description of the 529 Plan in the passage.

Answer:

to save money for college without taxation