[Parentsgroup-list] credit card reward points for 529 college savings plan--scam?

rohwein at fas.harvard.edu rohwein at fas.harvard.edu
Fri Jun 30 16:27:12 EDT 2006

My husband and I spent some time looking at 529s with our financial advisor as
well, and came to much the same conclusion.  529s can only be used for
education, and even there may have some limitations.  Anything not used for
educational expenses is not recoverable.  Also, each state's plan has somewhat
different terms and different investiments available, which of course affects
their growth over time, so if you are considering using one, you should
definitely shop around.  We did end up setting one up because a grandparent
wanted specifically to contribute to a 529.

I will also second the credit card company gives you money back feature.  Mine
has a good interest rate, and I get a credit in my account periodically.  (Its
through a credit union.)

Good luck,

Julie Rohwein
rohwein at fas.harvard.edu

Quoting Anna Shusterman <anna.shusterman at gmail.com>:

> For what it's worth, our financial advisor is not a big fan of 529 plans.
> You can save for college in some retirement accounts (apparently you can
> take money out of some IRAs for college without penalty), but you can't use
> 529s to fund anything other than education.
> Although anything that a credit card company feels like giving you for free
> is good, I suppose. I'm a big fan of the ones that give you cash back. I
> like getting the checks in the mail.
> On 6/30/06, Christine Dianne Wenc <wenc at fas.harvard.edu> wrote:
> >
> >
> > A question for all those wise in domestic finances:
> >
> > I'm passing this along because I know that many people on this list use
> > credit cards as backup, and this is a way to reassure yourself that you're
> > not throwing EVERY last cent of it down some 16% APR sinkhole, even though
> > that's exactly what the bloodsuckers WANT you to think.
> >
> > Has anybody used the 'upromise' rewards program?  They put about 1-3% of
> > credit card purchases into a
> > 529 college savings account for your kids. Is it worth it, after the
> > Vanguard account
> > fees etc.?  I expect there are free 529 savings accounts out there that
> > would make more sense for most people.  And, I bet you'd have to put a lot
> > on your credit cards to make it
> > worthwhile, which is exactly what many of us are trying NOT to do,
> > but...Hey, Sen. Bill Bradley recommends it!  (Though I
> > am suspicious of anything sponsored by Citibank, Exxon and Coke :)
> >
> > www.upromise.com
> >
> > any opinions? You'd also be signing up for an incredible junk mail
> > increase too. (though you can 'opt out' of some of it).
> >
> > --Christine, who managed to get one frequent flier ticket out of 6 years
> > of grad student book purchases on her airline credit card, and figures
> > that after 10 years her son's upromise account would have about 400 bucks
> > in it
> >
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> >
> >

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