Baccalaureate Bond

Pronounced back-uh-laurie-ette. Certain states in the U.S. sell baccalaureate bonds to help people save up for college, *tax-free* (gasp!). Some states even will even give you a discount on tuition if you use their baccalaureate bonds to attend a college in their state. Other states use the bond to fund their public universities, and sometimes the cash paid at the bond's maturity can be used for whatever nefarious, non-college plans you may have.