eSingleParent

Ways for Single Parent Families Can Afford College Tuition by Saving a Few More Dollars a Day

The Upromise Program & Citi Upromise(R) MasterCard(R) Accelerate College Savings

With the cost of a college education expected to triple by 2020, many parents are anxious that they won't be able to afford to send their children to college. But a new study released today by Citi and Upromise offers hopeful news: most American families can actually bridge the average college savings gap of $28,022 with daily savings of just a few more dollars per day.

According to a Citi/Upromise study, a typical American family with two young children (ages 2 and 5) -- defined as parents who are both 32 years old, with a combined income of $60,000 -- can send those children to a four-year public university (starting in 2018), while still meeting their retirement needs, by saving another $4.42 per day, beginning today. This dollar figure is modest thanks to more student aid being available than ever before: three out of four students receive financial aid and total aid has doubled over the past 10 years.

"The message of our research is a powerful one: saving early can have as big an impact on a family's ability to pay for college as the family's income," says Rob Rosenblatt, executive vice president, Citi Cards. "And Citi is committed to help families plan and save, with products that make that easy. The Citi Upromise Card converts a percent of everyday purchases into college savings, and helps parents reach their college savings goals."

The Upromise program and the no-annual-fee Citi Upromise MasterCard can help singe parent families get started towards this $4.42 amount per day quickly and easily. Here's how: first parents sign up for the free Upromise rebate program, where a portion of eligible spending on more than 7,000 participating items at grocery and drug stores in the Upromise network, at more than 7,000 restaurants and on gas at Mobil and Exxon locations is automatically saved in a Upromise account. Upromise members can further accelerate their college savings with a Citi Upromise Card because they earn college contributions on purchases everywhere -- both inside and outside the Upromise network -- made on the card.

You can start using Upromise even as they are expecting a child -- and thereby shrink their daily savings requirement further. To demonstrate the power of early savings, the Citi/Upromise research shows that:

Relatives and family friends can also open a Upromise account, and direct the college savings they earn to any student of their choice. With just a dollar a day from a grandparent or family friend, for example, the typical family's college saving's gap drops to just $3.27 a day.

The Citi Upromise Card is one of the most important features of the Upromise program because it accelerates college savings contributions in a number of ways:

* Purchases made on the card earn a 1 percent college savings contribution, even if the products and services are outside the Upromise network. (ii)

* Cardholders can earn 10 percent of purchases on more than 7,000 Upromise items at participating grocery and drug stores, as well as 2 percent on eligible gasoline purchased at Exxon and Mobil locations. (ii)

* Cardmembers can "double dip" by using the card to make purchases with other Upromise contributing companies. (iii)

* Lastly, family members can apply for their own card and combine their savings.