How a DISCOVER Card Made Things Simpler

As my wife's parents aged, it became necessary for the kids to become more involved in their day-to-day financial affairs.  Since I prepared their income tax returns, they naturally asked me for any suggestions.  Without any hesitation, I recommended that they apply for a DISCOVER card and then use it exclusively to pay all their bills.  The necessary steps were simple, and my reasons were simpler.

STEP ONE: We set up as many "auto pay" bills as possible - everything from utility bills paid monthly, home and auto insurance paid every six months, to annual subscriptions for software.  We were able to use the DISCOVER card for every vendor but a solitary utility company. For this vendor, the only option was an "auto-draft" from their checking account.

STEP TWO: We set up the DISCOVER card as their default payment method for all other expenses. Paying for prescriptions using Walgreens Express Pay? We used the DISCOVER card. Online shopping on Amazon.com or Walmart.com? We used the DISCOVER card. Favorita pizza delivery chain? We used the DISCOVER card.

STEP THREE: We set up their checking account to automatically pay the balance of their DISCOVER card in full every month. At first, this was a little bit scary because we were afraid that we would miscalculate and overdraw their checking account. However, as the months passed, we became more familiar with the bills, and so it became less intimidating. I am happy to report that the "auto everything" never caused the checking account to be overdrawn.

REASON ONE: The DISCOVER card offered cash back on every purchase. Who doesn't like cash back? My father-in-law likes it! Frequently, we would apply the accumulated cash back to reduce the balance owed. This proved especially useful for the months that we experienced semi-annual or annual charges.

REASON TWO: It made it easy to manage and audit their financial affairs. The monthly statement for the monthly checking account typically listed:

• The monthly deposits of their Social Security and pension payments.
• The automatic payment of the solitary utility company.
• The automatic payment of their DISCOVER card.
• Reimbursement checks written to the kids.

The monthly statement for the DISCOVER card typically listed:

• The recurring charges whether they were monthly, quarterly, semi-annual, or annual.
• The charges where the DISCOVER card was the default payment, such as Walgreens, Amazon, or Walmart.

Anything else needed to be explained or investigated.

REASON THREE: After the end of the year, DISCOVER provides an annual report that details all the charges by category. This was a huge benefit for preparing their income tax return. I could now look at one report and see the total amount spent on itemized deductions such as charitable contributions, prescriptions, co-pays for doctor visits, and home health care. This was the biggest reason for me. There was no telling how much money we saved in taxes because we were now "capturing" ALL their deductible expense transactions. It sure beats a grocery sack full of receipts!

I am sure that other credit card companies provide similar annual reports, but for our family, the DISCOVER card was a simple choise at the right time.