Jalissa's mom purchased coffee from the local coffee shop. The first cup of coffee was $3.95. Each refill is $1.25. She also decided to get a bagel for $2.50. If Jalissa's mom had 2 refills and a $0.50 discount as part of the rewards program, how much did she spend at the coffee shop?

The coffee refills cost $1.25 x 2 = $<<1.25*2=2.50>>2.50.

Jalissa's mom spent $3.95 + $2.50 - $0.50 + $2.50 = $<<3.95+2.5-0.5+2.5=8.45>>8.45 at the coffee shop. Answer: \boxed{8.45}.