Two weeks ago, I posted on a piece titled "Five Tips to Saving for College". The post had some good thoughts, but this comment was just as valuable in my opinion, and offers some good tips for everyone trying to save for college:
I joined UPromise in January 2002 just as my first child was born. I also got the UPromise credit card (from Citibank). Since joining I've gotten over $1,200 in UPromise dollars invested in my child's 529 account - that's $1,200 in free money, literally. Additionally, you can sign up your friends/family and have them link to your account. I've gotten another $110 from family who have signed up. If you assume I'll continue to get about $300 per year through UPromise for the next 15 years (when my son goes to college), at a 6% return on my 529 plan, that ends up being over $10,000 in free money when he is a freshman. Perhaps that will only cover four years of books, but hey, every little bit helps.
Pitfalls - there are two. First, the Upromise credit card carries a steep interest rate. So if you don't pay off the balance each month, your UPromise dollars are really going to be eaten away by interest charges. Second, buy using UPromise you are essentially signing up to allow all of your purchases to be tracked - from gas to food to clothing and beyond. I haven't seen a negative impact of this yet, but you should know going in that free money comes at a price of having your purchasing preferences being tracked.
I love practical advice from personal experience -- and this comment offers it. Thanks, Mark, for leaving it.
I used the uPromise credit card for a while until I siwtched to one offering better rebates, figuring I can invest the money in a 529 myself if I liked. The "friends and family" feature is a nice addition that you can't really get anywhere else (without just asking your friends and family for money, I suppose).
As far as purchases being tracked, I wouldn't worry about that any more than I worry about my credit card company tracking my purchases.
Posted by: Flexo | September 09, 2005 at 12:18 PM
I used upromise and thought it was a good program but now I found out about a new rewards program called www.bondrewards.com I do all of my online shopping there and get rewarded by doing so.. The cool thing about it is that I get to redeem for a US savings bond everytime I hit 50 BD.
Posted by: Sammy | February 24, 2006 at 07:23 PM
I used upromise and thought it was a good program but now I found out about a new rewards program called www.bondrewards.com I do all of my online shopping there and get rewarded by doing so.. The cool thing about it is that I get to redeem for a US savings bond everytime I hit 50 BD.
Posted by: Sammy | February 24, 2006 at 07:24 PM
I have an account with a similar site called Little Grad (www.littlegrad.com). I shop online a lot (hey, it beats taking the whippersnappers to the mall!) and you really do save money... the sign up was so easy that family members all joined too. (helps I was able to link to the savings account gram started during my pregnancy.) Good stuff.
Posted by: jenny | March 15, 2006 at 06:45 PM