By: Dawn Allcot
I recently became obsessed with store rewards cards and the money I can supposedly save with them. Sure, I always had the requisite grocery shopping cards on my keyring, the hallmark of a true suburban mom. (Whoever thought Pathmark would be a trendsetter in something?)
But now I have cards for department stores, coffee shops, bookstores and even Dick’s Sporting Goods, which I visit exactly twice a year for fitness-related birthday presents.
Are any of these cards actually paying off? When I remember to use them, sure. That’s why I favor rewards cards with the little key fobs. If I’m shopping, I have my keys with me, which means I can’t forget my card.
In addition to using the card, here are five more ways to maximize your savings and still protect your personal information when you use store rewards cards.
1. Be selective. I’m only half-joking when I say my keys are getting a bit heavy to carry. I can’t imagine carrying my cards in my purse. Do as I say, not as I do. Choosing your rewards cards wisely can simplify your life and maximize your savings. The fewer cards you have, the more likely you’ll be to remember to use them.
2. Steer clear of cards that have an annual fee. I don’t pay an annual fee for a credit card; I won’t do it for a rewards card. I have one exception to this rule: I purchased a Borders Rewards Plus card for $20 because I made a large Christmas purchase and the card paid for itself that visit. On our next trip, we got some free coffees and another 10 percent off our whole purchase. And I still have 11 months of savings to go.
3. Have a system for remembering your coupons. Many rewards programs send coupons in the mail. You need a system for tracking these so that, like the cards themselves, you always have them with you when you’re shopping. If you’re already a coupon-shopper, this is easy. I keep all the coupons in the baby’s diaper bag, which I always have with me. My sister-in-law keeps them on her refrigerator, so she can grab-and-go. I also like programs which deliver coupons via email and I just need to show the sales clerk my smartphone to get the discount.
4. Be loyal… but smart. Stores call these programs “loyalty programs” for a reason. You’ll get the most out of your rewards if you always shop at the same stores. But you have to be smart about it. Go for the best prices, even if a specific store doesn’t have a rewards program. Even with my Borders Gold Rewards card, I often get better prices on Amazon. It’s just like any shopping – you have to compare all factors, including discounts, shipping fees and sale prices.
5. Know what you’re getting for what you’re providing. Rewards programs are a win-win for stores and consumers. Stores get to track your spending habits so they can provide you with better sales that meet your needs, and you get coupons and perks. But, most of the information stores request is not mandatory. Sales clerks may try to bully you into providing your phone number by saying it permits them to look up your account if you forget your card. Just decline; it’s not an issue if you always carry your card. Set up an alternate email address (one you can use for all types of mailing lists) to provide if stores send coupons via email.
Of course, I’m leaving out the obvious point. I’d save even more money if I just stopped buying books or coffee or photo prints. But one important aspect of smart budgeting is creating a budget you, personally, can live with. Shopping is in my DNA and buying books is part of my profession. I may as well save money doing it.
A not-quite-reformed shopaholic, Dawn Allcot is a personal finance blogger at CreditShout.com, and is on a personal journey to financial freedom and no debt by 2012. She transformed her addiction to Starbucks pumpkin spice lattes into an addiction to researching credit card rewards programs and personal budgeting software, which has turned out to be far more healthy and profitable.
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