A 529 plan is a saving plan in the United States. special made for the students. It is tax-advantaged savings investment which is designed to encourage people to save for the expenses to be needed in the future higher education meant for a designated beneficiary.
Although the contributions from 529 plan is not deductible, but the earnings from the 529 plan is federal tax free and when the money is taken out to pay the expenses for higher education in college, it will not be taxed.
Thus, in this way a 529 plan is more helpful to save money as it is free from tax than a normal savings bank account.
A self servicing bias has to do with an act of taking credit for a positive result or outcome for example if a student passes an examination he will claim it happened because he studied well for the exam but if you get a bad grade he will claim that the teacher purposely failed him or the test wasn't fair.
