Final answer:
Two tax-efficient methods to save for college are 529 college savings plan and Coverdell Education Savings Account. Tax credits can also provide savings.
Step-by-step explanation:
A tax-efficient method to save for college is through a 529 college savings plan. This plan allows you to invest money that grows tax-free and can be withdrawn tax-free when used for qualified education expenses.
Another tax-efficient method is using a Coverdell Education Savings Account (ESA). Contributions to an ESA grow tax-free, and the withdrawals are also tax-free when used for educational purposes.
Additionally, taking advantage of tax credits such as the American Opportunity Tax Credit and the Lifetime Learning Credit can provide tax savings for college expenses.
Learn more about tax-efficient methods for college savings