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Save Smart..
Adding money earned from reward programs to your current investments will make your money grow faster. Use this money to purchase bonds or deposit it in a 529 college account. Listed at right, are books on investing. They will help you decide what investments are right for you.
529 accounts are named for Internal Revenue code section 529. Money from these plans can be used for tuition, books, fees, supplies and equipment required for study at any accredited college, university, or vocational school in the U.S. and some foreign universities. The principal grows tax-deferred and distributions for college costs are tax exempt. These plans usually have low start-up requirements, low contributions, and generally no income limitations or age restrictions.
Prepaid College Plans are offered by many states. These plans allow parents to buy tuition, school fees, and dormitory fees at today's prices. Payment can either be made in installments or in full and vary depending upon the number of years your child has until they enter college (your payments would be lower if you child was a newborn rather than 8 years old). Before considering this type of plan make sure you inquire about: transferability, covered costs and any exceptions, and participating colleges both in-state and out of state.
Savings Bonds are an easy way to save money safely and get a good market return. Federal taxes on the interest can be deferred until cashed in. They are also exempt from state and local taxes. Bonds can also be replaced if lost, stolen, or destroyed through the U.S. Treasury. Rates change each May and November with current rates listed on the right. There are two main types: I bonds and EE bonds.
The I-bond has a real rate of return over and above inflation, interest is inflation-indexed. They are sold at face value and earn interest for up to 30 years. Earnings are added each month and interest is compounded semi-annually. EE bonds are purchased at half their face value. They increase in value as they accumulate interest, which is paid for up to 30 years. When they mature, you are paid your original investment plus all interest.
I currently have savings accounts for both children and both have prepaid college from our state as well. When I earn money from rewards, see earn rewards page, I deposit it in their accounts and our prepaid program withdrawals the payment amount. I usually do not have to contribute any of my own money to pay for their college. Having savings account withdrawals is also a great way to track payments being made since the only withdrawals coming out are for this. I print out my statement for the year and keep them in a folder in case of any discrepancies. For holidays, I purchase gifts along with savings bonds for my children and my family/friends children.
If your college is already paid for, either with a prepaid plan, 529 account, or scholarship, the rewards you earn can be used for other expenses you may incur (books, food, gas, etc).
Combining the reward programs with merchant program can help you earn even more.
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Savings 
