Unfortunately, everyday living costs continue to rise. A study by The Motley Fool Ascent compared the average monthly expenses for Americans in 2023 to 2013 using U.S. Bureau of Labor Statistics (BLS) data. In 2023, Americans spent an average of $6,440 per month on expenses. That’s an additional $2,182 spent monthly compared to 2013.
One way to combat price increases is to take advantage of more ways to save money beyond purchasing only on-sale items and store-brand essentials instead of name-brand finds. By maximizing your savings, you can keep money in your checking account.
Believe it or not, your credit card may unlock additional savings. Do you use credit cards to pay for purchases? You may be ignoring strategies that allow you to save money when swiping your card.
Earn cash back rewards
Using a cash back credit card is an easy way to get rewarded when you spend money on everyday purchases. Some cash back cards offer flat-rate rewards, where you earn a set rate for every purchase you make with your card. So a flat-rate 2% cash back card would reward you with 2% back on every purchase.
Other cards offer bonus rewards in select categories. You might earn 3% on gas and grocery spending, but only 1% on purchases outside those bonus categories. It’s wise to choose rewards cards that match your spending to maximize the rewards you earn.
Some cards allow you to redeem your cash back directly to your bank account or by receiving a check. Alternatively, many cards allow you to redeem your earnings as a statement credit to your account, which will make your next bill cheaper.
A cash back credit card can help you maximize your savings when you shop. Check out our list of the best cash back credit cards to discover how easy it is to save money by earning cash rewards when you swipe your card.
Using a credit card that earns cash back rewards is a smart financial strategy because it can help you earn money back when paying for expenses, like groceries and gas. Just be sure to pay off your entire statement balance every time your credit card bill arrives. This way, you’re not charged interest for using your card. It’s in your best interest to avoid credit card debt.
Activate money-saving credit card offers
I have another way your credit card can help you save: credit card offers. Many credit card companies promote money-saving offers that cardholders can activate to earn cash back rewards when shopping with participating retailers.
You can browse credit card offers like this through your card issuer’s website or mobile app. Offers can expire, and new offers are added regularly, so it’s wise to check your offers often.
One example of such a program is Chase Offers. Eligible Chase cardholders can activate offers that interest them and use their Chase credit cards to make eligible purchases. Once the offer terms are met, cardholders can earn cash back posted to their credit card account. While you won’t get a direct discount on your shopping bill, you’ll earn a statement credit to your credit card account, which is similar to getting a discount at checkout. Talk about a win!
Some examples of recent offers I’ve seen include 10% back on Lululemon for a maximum of $16 cash back and 10% back on Aloft Hotels bookings of $100 or more for up to $57 back. I use this strategy to save money when paying for in-store and online purchases. Most recently, I earned 10% back when ordering new bedding online from Quince — saving me $30.
Some of the retailers you already spend money with likely participate in such programs, so don’t ignore a way to keep more money in the bank by activating credit card offers.
Every dollar you save makes a difference
Don’t miss out on savings opportunities. Credit cards can help you save money and earn rewards. Every dollar you save or earn can help you improve your financial situation. Want to learn more about the most popular features of some of the top credit cards? Review our list of the best rewards credit cards to discover how other credit card benefits can add value to your life.
