This is an interesting concept that takes advantage of something that we Americans do best without really even trying…. spend money. The way this program works, is that you enroll in the web-based affinity program of your choice and register your credit card. Some of the more popular programs are Upromise, Babymint, and EdExpress.
These affinity programs have cut deals with thousands of popular stores and companies so that they are able to track your spending. The way it works is every time you use that registered credit card, the program will then provide a rebate in the form of a tuition benefit of some kind. This kind of program is a fairly painless way to save money since all you’re really doing is spending money you would normally spend anyway.
It’s also nice because there are no restrictions as to who can sign up for the program to benefit the child (i.e.-grandparents, aunts, uncles). The downside to this program however, is that although when it comes to saving money for college, every little bit helps, it is highly unlikely that you will be able to completely pay for your child’s education by a rebate program alone.
Although there’s no disputing that saving for college is a challenging endeavor at best, it isn’t as impossible as it might seem. The good thing about the above mentioned savings plans is that you can use many of them in conjunction with each other (a 529-plan and an education IRA, for example). Usually the only restriction about combining savings plans is that you don’t contribute to more than one plan a year. Just make sure to do all your homework and get all the facts before investing your money anywhere. And always remember, it’s never too soon to start.