Fisher-Price Addresses Academic Fees with College Savings Credit Card
Published 25 May 2023
Mattel-owned toddler toy brand Fisher-Price and fintech Concerto (both American) have partnered on a new credit card designed to nudge families to start saving for college early. When linked to a tax-advantaged 529 education savings account, cardholders receive a rewards bump – a move intended to take the bite out of skyrocketing school fees.
While the Fisher-Price College Savings Mastercard offers 1% cashback on everyday purchases, users who link their card to a 529 savings account earn back 2%, doubling the standard reward. These accounts allow consumers to put pre-tax money towards future education expenses – be it for private school fees or college tuition – and also withdraw it tax-free.
Given Fisher-Price’s focus on toddlers and young kids, the card is a strong move to encourage families to start saving for education early, especially as tuition fees rise. The average cost of college tuition (both public and private) in the US has more than doubled in the 21st century, with an annual growth rate of 7.1% (Education Data Initiative, 2023), leading the average public university student to borrow $31,410 to attain a bachelor’s degree. Fifty-five per cent of public college students take on loans, as do 57% of those who attend private institutions (Forbes, 2023).
Meanwhile, we’re also seeing a boom in lifestyle-focused credit cards, with rewards designed to appeal to specific consumer cohorts. US-based card Bilt – as mentioned in Financial Wellness for the Inflation Era – is intended to reward renters. Elsewhere, a raft of new wellness-conscious cards provides holders with perks linked to health spending and fitness activities. In Meet the Eco-Pragmatists we also cover the Future Card, which links rewards to climate-smart purchases.
For more on consumers’ spending priorities, see Financial Wellness for the Inflation Era.
