Boost Your 529 College Savings

I have recently talked about how to save money and invest tax-free for college using 529 plans. To help boost your savings by making ordinary everyday purchases, there are a few great programs.

Upromise

One is called Upromise and what it will do is actually link your credit or debit card directly to their system. Therefore, when you purchase from a participating retailer you receive a percentage of the purchase deposited right to your 529 plan as a cashback reward.

 

BabyMint

Babymint is another service similar to Upromise that may allow you to double-dip on some offers. (Babymint.com is no longer active)

Fidelity

There is also a credit card offered by Fidelity that will reward you 2 % for all purchases made and deposit the rewards directly to your 529 plan. These all are quick to set up and will put your savings on autopilot using free money! I can’t ask for anything easier than that. With auto savings with reward cards like this, you can effortlessly grow your 529 plan without any extra effort beyond your regular spending. It’s a smart way to align your everyday transactions with long-term financial goals. Plus, the convenience and simplicity of such programs make them an excellent choice for busy parents or anyone looking to save for education expenses.

Assume you earn 2% cashback from $500 of purchases a month. That is a total of $10 earned each month for 18 years. $10 X 12 X 18 = $2160 in total savings.