Want to save money without making drastic lifestyle changes? One of the simplest strategies is learning how to use cashback and reward programs to save money on things you’re already buying. From groceries and gas to flights and online shopping, these programs put money back in your pocket with little effort.
Let’s walk through how to make the most of these tools, which ones to try, and how to avoid common pitfalls.
1. Understand How Cashback Works
Cashback is exactly what it sounds like – you earn a percentage of your purchase back in the form of cash, credit, or points. This can happen through:
Credit card cashback
Store-specific reward programs
Cashback apps and websites
You typically earn 1%-5% on eligible purchases, and the money either appears as a credit on your bill or gets deposited into your bank account.
2. Choose the Right Cashback Credit Card
Credit cards are one of the most powerful tools when using cashback and reward programs to save money – if used responsibly.
Look for cards that match your spending habits. Examples include:
5% back on groceries or gas
3% back on dining and travel
Rotating category bonuses
Some of the most popular cashback credit cards in the U.S. include:
Chase Freedom Unlimited
Citi Double Cash
Discover it Cash Back
Note: Always pay off your balance in full each month to avoid interest charges that wipe out your rewards.
3. Sign Up for Grocery and Retail Loyalty Programs
Nearly every major supermarket and big-box retailer has a rewards program. Signing up is usually free and gets you:
Member-only discounts
Digital coupons
Cashback or points per purchase
Popular store reward programs include:
Target Circle
Kroger Plus
Walmart Rewards
Walgreens Balance Rewards
These programs are easy to use and a great way to save money consistently on everyday items.
4. Use Cashback Apps and Websites
Apps and browser extensions are a quick and effortless way to earn money back on your purchases.
Here are some of the most trusted options:
Rakuten (formerly Ebates): Get cashback at 3,500+ stores just by clicking through the site
Ibotta: Offers rebates on groceries, online purchases, and more
TopCashback: Known for high payout rates and stacking opportunities
Upside: Offers cashback on gas, groceries, and restaurants
5. Stack Rewards for Maximum Benefit
One of the best strategies when using cashback and reward programs to save money is combining them. For example:
Use a cashback credit card
Stack it with a store’s rewards program
Click through Rakuten before making the purchase
Apply digital coupons from the store app
This stacking method can sometimes earn you 10-20% back on purchases without changing your routine.
6. Use Cashback Portals for Travel
Travel platforms like Booking.com, Expedia, and Hotels.com often partner with cashback sites. You can also earn airline miles or hotel points through travel rewards credit cards.
Some cards also provide bonus rewards for travel purchases, giving you even more back for flights, hotels, and rental cars.
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7. Redeem Points Strategically
Make sure to understand how your rewards are redeemed:
Cash back: Deposited into your account or statement credit
Gift cards: Often with bonus value (e.g., $25 gift card for $20 in points)
Travel credits or miles
Avoid redeeming points for merchandise unless it’s a great deal – these usually give you less value per point.
8. Watch Out for Expiration Dates
Not all rewards last forever. Some credit card points expire after 12-24 months of inactivity. Likewise, cashback balances in some store apps may expire if unused.
Set reminders every quarter to check your balances and cash them out if needed.
9. Avoid Overspending for the Sake of Rewards
The biggest trap in cashback programs is spending more just to earn rewards. Always ask yourself:
“Would I buy this if there were no rewards attached?”
Stick to your regular spending habits. The goal is to use cashback and reward programs to save money, not to spend more in pursuit of a few points.
10. Track All Your Rewards in One Place
Use a spreadsheet or a personal finance app to track:
Which cards or apps you’re using
What categories earn the most cashback
Upcoming expiration dates
Reward balances
Apps like AwardWallet or MaxRewards can help you stay organized and never miss an opportunity to save.
With so many platforms available today, using cashback and reward programs to save money is one of the most practical and low-effort strategies for boosting your savings without changing your shopping habits.
Frequently Asked Questions (FAQs)
Do I have to pay taxes on cashback rewards?
Generally, cashback earned from credit card purchases is considered a rebate and not taxable income. However, rewards from bank account bonuses might be taxable.
Can I stack multiple rewards for one purchase?
Yes. You can use a cashback site, a rewards credit card, and store loyalty discounts all on one transaction.
What’s better: cashback or points?
Cashback is more flexible, but points can offer better value when redeemed for travel or gift cards. Choose based on your spending habits.
Are cashback sites safe?
Yes, but stick to trusted platforms like Rakuten, TopCashback, or Ibotta. Always read reviews and check payout timelines.
How much can I realistically save?
Most users save $200–$500+ per year with minimal effort, depending on how often they use reward programs.