BabyMint College Savings
 By: Karen Rinehart, CFP®
The Henssler Financial Group Position Paper

The Hensler Financial Group Wealth ManagementBabyMint is a way to save for college by spending money. Every time you purchase an eligible good or service from a BabyMint company, a portion of the purchase price will be contributed to your BabyMint account. You are eligible to receive up to 20% of your purchase price depending on the arrangement the retailer has made with BabyMint. These accounts are non-interest bearing accounts. BabyMint accounts can make deposits to any 529 Plan account as long as the plan document indicates the plan will accept deposits from a third party. In order to maximize the benefit of a BabyMint account, it should be linked with a 529 Plan, Education Savings Account, mutual fund or money market account. If you link an account with an education savings account, BabyMint will deposit assets into your 529 account once the value equals $25. If you choose to have the rebates mailed to you directly, BabyMint will do this every quarter the account value equals $25. BabyMint is affiliated with 700 online and traditional retailers.

Savings can be made to a BabyMint account for any future college student. A future college student can be anyone who is a U.S. citizen that wants a higher education. Basically, it can be anyone whose higher education expenses you wish to pay. Students can be added at any time. The account holder has ultimate control over the account and the student does not have access to it.

The first step in taking advantage of the BabyMint program is to enroll. Go to www.BabyMint.com to join for free. You can cancel your membership at any time.

Family and friends can also register with BabyMint and direct contributions to your account for higher education expenses.

There are several ways to begin saving with BabyMint, which are as follows:

  • The participant can register through the web site and shop directly through BabyMint's web site. The program offers rebates from more than 200 online retailers. You must log in and choose the "Shop and Earn" tab on the web site. Shop and check out as you normally would. BabyMint can only track purchases made at their partners' sites, when you link directly from the BabyMint site. You can earn up to 20% of the purchase price; the contributions will be deposited to your college savings account.
  • The program offers coupon technology that can be used in 500 traditional retailers. The coupons are printed from the BabyMint web site. The participant must log in to the BabyMint web site to receive the coupon. Once the participant has logged in to the web site, the participant's information is embedded in the bar code of the coupon. BabyMint can track where to deposit the rebate based on the information embedded in the bar code.
  • BabyMint now has a credit card issued through MBNA America. The participant will receive a 1% rebate on all purchases. There is no annual fee. When you use this credit card at participating merchants you will get an additional 8% credited to your BabyMint account on all of your purchases. There is no maximum rebate amount and the BabyMint program offers matching scholarship credits, redeemable at 150 private colleges.

BabyMint also offers a "Tuition Rewards Program". Through its partnership with SAGE Scholars, BabyMint members can receive tuition credits redeemable at 150 universities and colleges, in addition to merchant rebates. Tuition rewards are tuition reductions, that is, aid not based strictly on financial need. SAGE Scholars has negotiated with member colleges to automatically present a financial reward to families who save for college.

You only need one BabyMint account even if you have several students that you are saving for. You can specify the percentage that you want contributed toward each student. This is called allocating the assets.

We suggest registering with BabyMint. This service is free and you can earn money for college while spending money on everyday items. For more information regarding this topic, please contact The Henssler Financial Group at 770-429-9166 or comments@henssler.com.

All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing.
 
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