If you’ve ever looked into the different types of credit cards before, you know that there are a ton of different programs to choose from. There are cash back credit cards, travel rewards, gas rebates, and cards that donate money to charity every time you make a purchase. All of these credit cards give you something good in return for your spending so choosing between cards can sometimes be difficult. But for parents who are already starting to wonder how they’re going to foot the bill when it’s time for their kids to go to college, there may be no better rewards program than that offered by 529 Plan credit cards. A 529 Plan card is a specific type of rewards credit card whereby instead of actually getting their rewards from purchases in the form of a cash back rebate, the money is automatically deposited into a 529 plan account which can be used to help finance your childrens college education down the road. This is ideal for the parent who wants to start putting money away regularly for a child’s future education but who just can’t afford to take that money from any other part of the family budget
Another thing that you’ll want to look for is what type of rewards you get back on the card. Some 529 Plan cards will have a straight percentage-based rate; for example, 1% of all purchases may be deposited into the savings account. Other 529 cards will offer a higher percentage back for certain types of purchases or for purchases made at specific stores. Review all of the options carefully to make sure that the amount you’re getting back to put in the account is the best amount possible for the types of purchases that you regularly make.
Of course, in order to rack up these rewards, you’re going to need to make sure that you’re using the card regularly. As with all rewards cards, you should use it every time that you make any sort of purchase. You should also schedule all of your monthly bills (cell phones, Internet, utilities, health insurance) to pay to this card. Any expense that can go on the card should go on the card so that the savings in the account add up more quickly.
Of course, you don’t benefit from setting aside this savings if you’re paying anything in interest or fees on the card. You should make sure that you stick within a spending budget so that you can pay the card off in full each month in order to avoid paying interest on your purchases. You should also make sure that you avoid all late fees, over-limit fees and any other fees associated with the card. Use the card to benefit your family, not to take away from it!
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