The holidays are fast approaching. For many of us, that means shopping lists, gift exchanges, and festive spending. According to recent surveys, most Americans will spend between $890 and $1,012 on holiday gifts and celebrations this year. That’s a big chunk of change—but what if your holiday shopping could help you save?
By using rewards cards, you can earn cash back, points, or other perks while checking off your gift list. Whether you prefer credit or debit, rewards programs can help you stretch your budget and even earn a little extra. Here’s how to shop smart this season—and avoid the financial regret that often comes after the holidays.
Why Rewards Cards Can Be a Smart Choice for Holiday Shopping
Holiday shopping can put a strain on your budget, but using a rewards card can help you make the most of the money you’re already planning to spend. Instead of just spending, you can earn something back. Rewards cards can:
Types of Rewards Cards and How They Work
Earning rewards on holiday purchases sounds great, but what if you don’t already have a rewards card? With so many different options out there, it can be overwhelming to decide which one is right for you. Here are some of the most popular rewards cards to consider:
Plan Ahead to Maximize Rewards
If you want to get the most out of your rewards cards, it’s important to do a little preparation before you hit the holiday sales.
A Word of Caution: Avoid Holiday Debt
While rewards cards can help you save, they can also lead to overspending if you’re not careful. No one wants to end the holiday season with a mountain of credit card debt. Here’s how to stay on track:
Smart Spending Starts Here
The holidays should be joyful—not stressful. By using rewards cards responsibly, you can make the most of your spending without falling into the debt trap. Ready to start earning rewards? Explore Bank5 Connect’s credit card options or learn more about our debit card rewards program today.
By using rewards cards, you can earn cash back, points, or other perks while checking off your gift list. Whether you prefer credit or debit, rewards programs can help you stretch your budget and even earn a little extra. Here’s how to shop smart this season—and avoid the financial regret that often comes after the holidays.
Why Rewards Cards Can Be a Smart Choice for Holiday Shopping
Holiday shopping can put a strain on your budget, but using a rewards card can help you make the most of the money you’re already planning to spend. Instead of just spending, you can earn something back. Rewards cards can:
- Stretch your budget by giving you cash back or points on purchases you were going to make anyway, helping to offset holiday costs.
- Turn spending into future savings when you redeem points for gift cards, merchandise, or travel.
- Take advantage of seasonal bonuses, like extra points for online shopping or bonus cash back at popular retailers.
Types of Rewards Cards and How They Work
Earning rewards on holiday purchases sounds great, but what if you don’t already have a rewards card? With so many different options out there, it can be overwhelming to decide which one is right for you. Here are some of the most popular rewards cards to consider:
- Cash Back Cards: These cards return a percentage of your purchase back to you as cash. Many cards offer cash back on everyday purchases, and some even have bonus categories during the holidays, or at certain times throughout the year.
- Points-Based Cards: With a points card, you earn a certain number of points for each purchase, which can be redeemed for merchandise, gift cards, or other perks. This can be a great option if you like flexibility and want rewards you can use in different ways.
- Travel Cards: If you’re dreaming of a post-holiday getaway, a travel rewards card might be your best bet. These cards allow you to earn points or miles for flights, hotels, and other travel expenses, so you can turn your holiday spending into future adventures.
- Debit Card Rewards: Not a fan of credit cards? No problem. Some banks, including Bank5 Connect, offer cash-back rewards on debit card purchases.
Plan Ahead to Maximize Rewards
If you want to get the most out of your rewards cards, it’s important to do a little preparation before you hit the holiday sales.
- Apply Early: If you don’t already have a rewards card, you should select one and apply for it before the holiday rush.
- Know Your Bonus Categories and Activate Them if Necessary: Some cards offer extra rewards for certain purchases—like groceries, dining, or online shopping—and you often have to activate them or opt-in. Some debit card rewards programs also require you to select offers before shopping.
- Stack Rewards When Possible: Combine your card’s rewards with retailer promotions, coupons, or cash-back apps for even more savings.
- Redeem Wisely: Plan ahead for how you’ll use your rewards. Gift cards can make great stocking stuffers, and cash back can help offset holiday expenses.
A Word of Caution: Avoid Holiday Debt
While rewards cards can help you save, they can also lead to overspending if you’re not careful. No one wants to end the holiday season with a mountain of credit card debt. Here’s how to stay on track:
- Pay Your Credit Balance in Full: If you use a credit card, make sure you can pay off the balance when your statement arrives. Carrying a balance means paying interest, which can quickly outweigh any rewards you earn.
- Set a Budget Before You Shop: Decide how much you can afford to spend and stick to it. Overspending for the sake of earning rewards is never worth it.
- Don’t Chase Points: Buying things you don’t need just to earn rewards is a fast way to rack up debt.
Smart Spending Starts Here
The holidays should be joyful—not stressful. By using rewards cards responsibly, you can make the most of your spending without falling into the debt trap. Ready to start earning rewards? Explore Bank5 Connect’s credit card options or learn more about our debit card rewards program today.