Cashback and Rewards Apps: How to Save on Every Purchase
In today’s economy, every dollar counts. Americans spent thousands fo dollars per household per year. What if you could get some of that money back without changing your spending habits? That’s where cashback apps come in – your secret weapon for effortless savings.
What Are Cashback Apps and How Do They Work?
Cashback apps are mobile applications that reward you for purchases you’d make anyway. The concept is simple: these apps partner with retailers who pay them a commission for driving customers their way. The apps then share a portion of that commission with you as “cashback.”
Not everyone regularly use cashback apps or rewards programs, meaning there are people leaving money on the table! Are you one of them?
Top Cashback Apps Worth Downloading Today
Rakuten (Formerly Ebates)
Rakuten has partnered with over 3,500 stores and offers up to 40% cashback on purchases. Users earn an average of $63.50 per quarter, according to company data. Their “Big Fat Check” quarterly payment system makes saving feel like receiving a regular bonus.
Ibotta
Specializing in grocery rebates, Ibotta has helped users earn over $1 billion in cashback since its launch. The app reports that active users save an average of $150 annually on groceries alone.
Fetch Rewards
Fetch works differently by awarding points for scanning any receipt. Those points convert to gift cards for popular retailers. The simplicity has attracted over 17 million active users as of 2024.
Maximizing Your Cashback Potential
Stack Your Rewards
The secret cashback power users know? Layering rewards. Use a cashback credit card for the purchase, buy through a cashback app, and upload your receipt to a receipt-scanning app. This “triple-dipping” strategy can boost your effective cashback rate from 2-3% to 10-15% on many purchases.
Set Up Price Drop Alerts
Apps like Capital One Shopping and Honey monitor price drops after purchase. If the price drops within the return period, they’ll help you claim the difference. This feature alone saves users an average of $17 per successful price adjustment.
Link All Your Payment Methods
Don’t miss out on automatic cashback by forgetting to link your cards. According to Drop, users who link multiple cards earn 36% more rewards than those using a single payment method.
Real Savings: What Can You Expect?
The average American who consistently uses cashback apps saves between $300-$500 annually, according to personal finance site The Penny Hoarder. That might not sound life-changing, but consider this: $500 invested annually at a 7% return grows to over $10,000 in just 15 years.
Even better, these savings require minimal effort once you’ve set up the apps. Unlike extreme couponing that can consume hours weekly, cashback apps integrate seamlessly into your existing shopping habits.
Getting Started Today
Ready to stop leaving money on the table? Start small:
- Download one of the recommended cashback apps
- Link your commonly used payment cards
- Browse offers before your next shopping trip
- Watch your savings grow automatically
Remember, the best savings strategy is one you’ll actually stick with. Cashback apps work because they require minimal behavior change while providing regular rewards.
Want to take your financial journey further? Check out our guide on How to Take Control of Your Money for a comprehensive approach to personal finance.
Feeling the pinch despite your saving efforts? It might be time to boost your income. Learn the Signs You Need Extra Income: When and Why to Start a Side Hustle to determine if earning more should be your next financial move.
What’s your experience with cashback apps? Have they changed your shopping habits or helped you save for something special? Share your story in the comments below!
