Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



3 Creative Ways to Get Your Kid Free Money for College

When we think about saving for our kid's college education, accounts like 529 plans usually spring to mind. These accounts should certainly be our first line of defense in saving for our kid's education. But there are lesser-known ways to rack up free money for your child's future.

Source: Wikimedia Commons

Inventive ways to save
First, use your credit card's cash back rewards features. Then, discipline yourself to funnel your rewards into your child's college savings account. That way, more money is saved for your kid's education without it costing you an extra dime. For instance, assuming you charge $2,500 per month on your card, a modest 1% everyday cash back rewards feature can add up to $300 annually. If you did this over 18 years (the time your newborn grows to a college dorm dweller), it would total more than $5,400 in free money. Of course, be sure to fully pay off your (preferably no annual fee) card on time every month.

Second, check out Upromise, a college savings service that can furnish you with a linked credit card. Earn cash back when you use the card for purchases from participating merchants.  You can invest your Upromise earnings into a 529 plan, deposit them into a savings account, or request a check. Better yet, it's free, and you can invite family and friends to join, too.

Third, consider the Monetta Young Investor Fund -- a no-load, low-cost mutual fund that has vastly outperformed the overall stock market -- for your child's college savings. Even better, as a fund shareholder, your child is entitled to college tuition rewards totaling more than $11,000 worth of tuition credits over 18 years. The rewards help reduce tuition costs at hundreds of colleges and universities nationwide and are non-taxable and do not affect financial aid. As an added bonus, shareholders receive age-based games and contests designed to teach your child about money.

Foolish final thoughts
Definitely take advantage of traditional college savings accounts, like 529 plans. But don't forget to implement creative solutions, too. By doing so, you'll rack up free cash for your kid's college education.

Do your investing priorities include saving for your kid's college and your retirement? The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report, "3 Stocks That Will Help You Retire Rich," names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2618020, ~/Articles/ArticleHandler.aspx, 9/29/2016 1:42:18 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,176.73 -162.51 -0.89%
S&P 500 2,153.64 -17.73 -0.82%
NASD 5,280.73 -37.82 -0.71%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes