Shop More, Save More for College Gimmick or Reality?

The man sat in a chair beside a dressing room at a Tampa, Fla. maternity store. "That one looks great," he says to his pregnant wife. "I really like that one."

Just as his wife steps behind a curtain to slip on the next outfit, a voice bellows from behind the counter. It's directed toward him. "May I tell you about Futuretrust MasterCard?" she inquires.

The employee offers information about a credit card.

He's told the store has struck a business relationship with a company named Futuretrust. With nowhere to go, he listens a little more.

The clerk explains that the program helps new parents save for their child's college education. She says it offers cardholders cash back on purchases that goes into a college savings plan. In short, she says, it's a program built on the premise the more you spend, the more you save.

WHAT'S THE DEAL?

Futuretrust is targeting perspective customers before they even become parents. That's why you'll find information about the company at Motherhood Maternity, Pea in the Pod and Mimi Maternity.

"We have a great number of men who apply to join," says Futuretrust's Managing Director Adam Bashe. "They'll be sitting in the store and read about the program."

Futuretrust is just one of three companies in the business of the trying to help you save for college. There's also Upromise and BabyMint, Inc.

All have the same goal. But they're different in services they offer; companies they're affiliated with; and how much you can get back. But should you bother with any of them? And if so, which one?

"Our goal is make you become a more disciplined investor," says Bill Koleszar, chief marketing officer for BabyMint, Inc., which, like Futuretrust, offers cash back on purchases good toward a college education. Every time you use the BabyMint credit card, you get at least 1% cash back. If you shop at businesses affiliated with BabyMint, you get even more back. How much depends on the business. Like Futuretrust, the credit card is free.

Koleszar says the average BabyMint credit card holder gets back $46 a month. Assuming an interest rate of nine percent, over 18 years, that's $20-thousand. But that would hardly pay for a college education in 2020, which will probably cost five-times that amount for a four-year state university. Koleszar says it's still a good deal.

"Even if you just earned enough for books and pizza," says Koleszar, "it's more than you would've earned otherwise? We never pretend we are the end all be all answer however we can provide a meaningful supplement to your (other) savings."

Upromise works differently. There's no mandatory credit card to mess with or apply for. You simply register credit cards you already have in your wallet "and you go shopping," says Upromise's Catherine O'Rourke. The company is affiliated with hundreds of company's and products and the cash back you get varies considerably. Upromise offers a credit card at no cost, and you get back even more if you use it.

O'Rourke says signing up should be a no-brainer for any father. "This is one of many things they should take advantage of to help save for a child's college education and I can't imagine any father who wouldn't take advantage of it." She recommends signing up grandparents and relatives-and getting them to link their accounts to your child's 529 plan. That way you save much quicker. The money you earn, she says, can be deposited into a 529 plan you create through Upromise, or one you create on your own.

WHAT'S THE DOWNSIDE?

"There's not a really a downside to them," says Daniel Vigne, a Certified Financial Planner for Wachovia Wealth Management in Sarasota, Fla., though he warns against depending solely on these programs for something as serious as a child's education. "As a father, I'm going to dedicate money to (my own) 529 plan-I'm not going to rely on this card system."

Vigne, a father of three, recommends a 529 plan you create though an investment firm or through your state-a 529 plan that be protected from creditors. He says not all of them are. That would be a costly mistake should you declare personal bankruptcy or lose a lawsuit.

So, which one is best. That really depends on what you want and which stores you frequent. Check the companies' websites and see for yourself. They're all free. All easy to join. And heck, if you can't decide, join all three-you really have nothing to lose.

Is there is a catch? Not one interactiveDAD.com could find. They are what they are: An easy way to sock away at least some money for a child's education. Just remember, whatever you save is just a start.

Glenn Lawrence is editor of Interactive DAD Magazine http://www.InteractiveDadMagazine.com, FREE online magazine for fathers focusing on family and finance. It's updated DAILY!

---

Issuing Warrants to Investors

When raising capital for a business venture, warrants are a common form of equity that is given to investors. A warrant is like an option ? it... Read More

Dumb Money

Many people have, at one time or another, taken some of their hard-earned funds, and decided to put them in the stock market. These well-meaning individuals either... Read More

25 Ways to Find Companies to Buy

When you start your program to purchase your "ideal" company, you quickly realize that your ultimate success will depend on two primary skill sets: 1) Your ability... Read More

CYA

You all know what CYA stands for. Of course, Cover Your Assets.And everyone does it. You have protection against losing your car in an accident. You have... Read More

Property Investment Just Got Exciting

There is an area in Brazil that has lower crime & lower property prices than where your are probably sitting right now!Demand from the increasing retirement population... Read More

Retirement Is A Scary Proposition If Youre Without A Plan, And Running Out Of Time

Of the 75 million baby boomers nearing retirement today, many are:* Debt Ridden* Severely unprepared for retirement* Under Funded* Without a StrategyThis is a very serious problem... Read More

Now is the Time to Invest for Your Retirement!

Yes, it's the time we've all been waiting for?tax season! We know you've gotten a jump start and filed early this year, right? Of course not, but... Read More

Why have Investment Plans for the Stock Market

If you do not have an investment plan in the stock market you are subject to impulses, urges, hunches, premonitions, strong feelings, greed, panic, fear, indecision, and... Read More

The Switzerland of Asia Shines

In many respects, Singapore is the Switzerland of Asia.Begun in 1819 as a British trading colony, the Republic of Singapore was founded in 1965 under the leadership... Read More

Preholiday Trading

The Light Crude Continuous Contract closed at $66.13 a barrel Friday, after hitting an all-time high at $67.95 a barrel earlier in the day. A week from... Read More

Reading Between The Lines In Annual Proxy Statements

Upper Saddle River, N.J. - May 11, 2005 - Now that a large number of the proxy statements for public companies with fiscal years ending December 31,... Read More

Poll Names Coin Laundries Best Investment For 2005

According to Morton Pollack, CEO of PWS, The Laundry Company and editor of the newsletter, "Historically, laundry owners have been a quiet group. Knowing they are onto... Read More

The Perfect Mutual Fund

The Perfect Mutual Fund is the one you build yourself!The perfect Mutual Fund you build should have the objective of owning no more than 12 to 15... Read More

Guru Focused: Robert Olstein?s Short Sells

While it is rather rare that value gurus sell stocks short, Robert Olstein has been selling short in his Financial Alert Fund. The accountant-turned fund manager spots... Read More

Powerful Hidden Techniques Mystery Formula - The Covered Call Option Trading Buy-Write Strategy

For better or worse, most option trading investors purchase stocks with the intent of holding their shares for an extended period of time.We do this mainly because... Read More

401(k) Plans

I've been in and interested in the stock market so long (one year shy of forty years) I can remember when the mutual fund pages in my... Read More

The Truth About Real Estate Investing - Is It Right For You?

You have probably been hearing, seeing and reading that real estate investing is the best thing since sliced bread. There are many late night cable television infomercials... Read More

How Eating Bitumen Made Me a Better Stock Trader

Stock market trading is a fascinating activity.There are so many layers to it. And so many paths that you can go down.Soon after we first got interested... Read More

Finding False Gold in Penny Stock

As far as traders go, many do not see the penny stock as a solid way to do business. Many believe that dealing with penny stock is... Read More

Emotions: A Traders Worst Enemy; Get Rid of Fear and Greed - Youll be Glad You Did

You hear it over and over and over in books, forums, and chatrooms. Fear and greed, fear and greed, fear and greed. Emotions are a trader's worst... Read More

How to Invest Your Money

Think carefully on how to invest your money because if you make wrong decisions it could cost you dearly. There are many ways in which to invest... Read More

Short Selling for Investors

Shorts. Let's see. If there are shorts there must be longs. Which is best? Longs or shorts?If you are trading in the stock the stock market experts... Read More

Maniac Investment

Let's first understand what maniac means. According to Webster a maniac is "mad; raging with madness; raging with disordered intellect". You don't know anyone like that, do... Read More

Part II of Day Traders and Swing Traders and Options? Maybe!

Before every protective put trade it is possible to calculate your anticipated maximum loss. Use the formula: (stock price minus strike price) plus option price. For example,... Read More

How to Analyze the Veracity of Investment Newsletters

When trying to analyze whether a promotional ad for an investment newsletter or a market timing investment trading system is worthy of investigation, the following questions should... Read More

Making Your Investment Dollars Work for You

Investments are scary for some people, especially those who have never invested before. We grow up hearing horror stories about how this person or that person lost... Read More