College Savings Reward Plans - Making Them Work for You

You are probably well aware that college costs are soaring and that need for parents to build college savings has never been greater. You may also be aware of various loyalty reward programs (such as Upromise and BabyMint) that pledge to help build your college savings by paying back a small percentage of amount you spend using their credit card and/or buying certain products. Companies offer these programs because, in aggregate, they know they will lead to higher spending on their products or services. Smart consumers learn to maximize earned rewards without altering their spending habits.

Reward programs can help build college savings. That's good news. The bad news is that these programs have grown in number and become very complex. It is very difficult for parents to take time to fully understand, compare and select program best suited for them. This article aims to cut through morass and lay out a clear strategy for parents to follow to get most from college reward programs.

The Basics

The various college savings reward programs fall into two broad categories: credit card rewards and savings clubs. The distinction gets blurry because many of "savings club" programs also sponsor a credit card under same name. Nonetheless, you can better understand and optimize your use of programs if you categorize them in this manner:

A college savings reward credit card is a regular MasterCard or Visa card that - in lieu of frequent flier miles or cash back bonuses - makes a 1% or 2% contribution to a college savings account based on purchases made with card.

A savings club (or loyalty program), on other hand, is a membership club through which a network of merchants offers members special rebates for buying their products or services. Rebates are directed to member's college savings account. Some savings clubs have membership fees or require that you have their affiliated credit card to be a member. Others are free and permit use of non-affiliated credit cards.

College Rewards Credit Card	Associated Savings Club
BabyMint College Credit Card	Baby mint
Baby Center Credit Card	Baby Center Savings Program
Being Developed	edexpress
Fidelity/MBNA College Rewards	NONE
futuretrust Credit Card	futuretrust
Savingforcollege Credit Card	NONE
The Education Plan Credit Card	The Education Plan
Citi Upromise Card	Upromise

Optimizing Rewards

A few of college savings clubs require that you have their branded credit card to participate in savings club. We suggest you avoid these programs in favor of a "best-of-breed" strategy that lets you pair best rewards credit card with best savings clubs. Here's a five-point strategy that can help you maximize college reward earnings:

1. Select College Rewards Credit Card Paying Highest Rebate on All Purchases - Typically, credit card rewards will generate greater college savings than savings club programs. This is simply because rebate (1% or 2%) is paid on value of all purchases made with card (subject to card's limits). Savings club rebates, on other hand, are paid only on value of purchases from specified participating merchants (although often at higher rates than credit cards). Most of college reward credit cards - pay a 1% rebate. The sole exception is Fidelity/MBNA College Rewards MasterCard that pays 2% (up to $1,500 per year). You can find more detailed information about various college reward credit cards by visiting www.529rewards.com.

2. Use College Rewards Credit Card as Your Principal Method of Payment - Your aim should be to keep spending at current levels (i.e. within your income) but to replace checks, cash, and other credit/debit cards with rewards card as your principal method of payment.

3. Maximize Use of Credit Card But Always With a Goal of Paying Balance in Full Each Month - Credit card acceptance is becoming more universal each day. This means new opportunities to earn 529 rewards - e.g. car and homeowners insurance payments, municipal water and tax bills, groceries, tuition, etc. For each $1,000 of monthly costs that you can shift to rewards card, you'll earn $10 - $20 of free cash for future college expenses.
   
   

How to create an Irresistible Valentine’s Day Centerpiece:

Valentine’s Day is just around corner which of course makes us think of love, romance and of course flowers! It seems this special day wouldn’t be complete without them. Flowers touch our souls and brighten our spirits which is why they have remained a popular choice for “lovebirds” all over world!

Depending on your mood and flowers you pick, you can make this arrangement whimsical or elegant, so gather what you need and let’s get started!

Supplies:

Store bought heart shaped basket (about 4 inches deep)

Florist foam

Plastic lining

Flowers ~at least two varieties

Larger flowers (all same color) such as carnations or roses for center and filler flowers for accent

Follow these simple steps to create your own Valentine’s Day Centerpiece:

1. Line heart shaped basket with heavy plastic

2. Cut a piece of florist foam in shape of a heart~ foam should fill up entire basket