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Are Those Reward Points Really Worth It

by Marie Vonow (follow)

Blogs:https://minamaries.blogspot.com.au https://simpleselfimprovement.blogspot.com.au/

Money (18) Saving Money (9) Reward Points (1) Reward Programs (1)

Image by Marie Vonow

There are numerous businesses which issue a card that records points every time you make a purchase and hand over your card. You can then trade these points for various rewards or convert them to a cash value to spend in the shop when you have accrued sufficient. Sometimes these cards can provide a saving or a treat. Other times, perhaps they just tempt you to spend more money for a small reward. After all, businesses offer them to get you to shop with them, not because they really want to reward you for your loyalty.

I have a couple of reward cards in my purse but I have thrown others away or decided not to join the loyalty club in the first place.

Reasons I have thrown cards away
Everyone has their own ideas but I have chosen to get rid of a few cards because -

I couldn't work out how many points I had even though it was supposed to be easy to work out by logging into my account online

I needed far too many points to get any reward

I didn't spend much at a particular shop so wasn't going to accrue points

I stopped shopping at a particular business

you only got points if you spent over a certain amount in one transaction

I didn't want to be tempted to overspend

Overspending can cause a feeling of panic Courtesy of Pixabay

Why do businesses offer loyalty programs and reward cards?
There are a number of reasons why a business may set up a loyalty program, including -

to encourage you to shop with them instead of the competition

to encourage you to upgrade your order so you get more points

to tempt you to buy extra items eg a cake with your coffee, chips and a drink with your burger

to get information about your spending habits so they can target you with emails and texts encouraging you to spend at their business

some companies share information about your spending habits with third parties and this fact is probably included somewhere in that privacy policy which is far too long to read

Ways a reward program may work for you
A rewards program may have some advantages for you -

Sometimes you get points for doing the shopping you were going to do anyway. This is probably grocery shopping or buying petrol. Maybe you get points for paying your electricity bill or taking out insurance. If the company is giving you the best deal and you get points, the rewards program is probably working for you. It may take quite some time to have enough points to redeem but if you don't actually spend extra money, it may be worth it.

you may find saving your points to redeem for Christmas food, vouchers or presents helps your budget. It depends on your spending habits and where you shop.

you may enjoy a treat bought by cashing in points. I have been happy with a couple of magazine subscriptions I have received when I redeemed points. I have also redeemed points for Flybuy Dollars on a number of occasions and found the extra money useful.

perhaps you redeem points for an item you would have spent money on so you have saved money.

Courtesy of Pixabay

When deciding if you have made a saving by redeeming your points you need to consider whether you could have bought the item elsewhere more cheaply than the amount the business says it is worth.

It is up to the individual to consider the big picture to work out if they are benefitting from signing up to a rewards program.

# Money
# Reward Points
# Reward Programs
# Saving Money

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