College Savings Credit Cards
Many recent studies conducted over the course of the past several years have concluded with a steady increase in the cost of college tuition for students. This continual increase in tuition combined with ever-increasing costs-of-living emphasizes the importance of saving for college expenses by students and their parents. Several investments exist like 529 plans that allow parents and children to contribute funds that grow tax-free and can then be used for college expenses. These 529 college savings plans are available through your state government or your investment advisor.
For those people that want an easier way to make contributing to their own or their children’s college savings plan, there is a simple way to do so, even without actually contributing money out-of-pocket. Instead of making your daily purchases with cash or a debit card, you can use a cash back credit card designed specifically to earn cash back that is contributed to a college savings plan. This strategy can be used in conjunction with a savings plan already in place or as a stand-alone way to save for college. There are two cash back credit cards designed to do this for you.
Citi® UPromise® Card
The Citi® UPromise® credit card allows you to earn 1% cash back on everyday purchases you make and anywhere you shop that MasterCard® is accepted. Eligible gasoline purchases at Exxon Mobil earn an additional 2% towards college savings. Cardholders can even earn 10% more on eligible grocery store and drug store items. There are also over 40,000 UPromise participating merchants that you can earn even more rewards at when you shop. New cardholders can also enjoy 0% APR on balance transfers for twelve months. UPromise also provides resources, service and programs to help you pay for higher education costs.
Fidelity Investments® 529 College Rewards® American Express® Card
If you currently have a 529 plan or other investments with Fidelity Investments, then consider the Fidelity Investments® 529 Plan credit card. Cardholders earn reward points at a rate of 1.5% on purchases which can be converted to cash. The cash is then automatically contributed to your Fidelity-managed 529 account. Get special treatment with the American Express SelectsSM offers on airfare, electronics and more. An introductory 0% APR is also available on balance transfers and the card gives you access to American Express’s exclusive MyConcierge service. Plus, enjoy the flexibility to pay in full or over time every month.
Make saving for college easy with a card that does the work for you. Earn cash back and start saving for college expenses just by using one of these credit cards on your everyday purchases. That’s like saving every day and every day counts! The more you charge, the more you save toward college expenses for you or your children. Now that’s easy.
