Other People’s Money

Using other people’s money to pay for your child’s college may seem too good to be true. But there are some ways to do this, besides scholarships. One is rewards credit cards that contribute cash back to a 529 account. If you are accruing frequent flyer miles or another reward and not using it, it may be worth looking at opening one of these reward programs.

Two of the leading ones are UPromise’s Mastercard, a no-annual-fee card that contributes up to 5% to a UPromise 529 account or several other college-related options, and Fidelity’s Rewards AmEx or Visa that contributes 1.5-2% to a Fidelity 529 account. Each has a different rewards structure, and different fees and terms, so one or the other may be more beneficial to your family. And of course there are a limited number of 529 plan options to which these link, so you may need to open an additional 529 account in order to take advantage of the rewards program.

But hey, it’s someone else’s money going into your college savings fund.

 

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s