Groceries or travel? Here's how different age groups redeem credit card rewards
How do you spend your credit card rewards? A recent survey shows how you redeem your rewards depends on your age.
American Express Canada recently surveyed how people redeem their rewards, and the results show a pretty striking difference.
If you’re a Gen Z or a millennial, you’re more likely to spend your rewards on essentials.
“Gen Zs and millennials are more likely to redeem credit card rewards for everyday needs such as groceries and gas,” states the study.
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Among participants, 57% said they use their rewards to cover grocery costs, and 49% said they use theirs for gas.
On the other hand, 40% of boomers are “in the habit of using points for travel.”
“The economic landscape hasn’t significantly impacted Canadians’ spending on rewards credit cards,” reads the survey. “Although younger generations are skillful with rewards redemption to maximize value.”
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More boomers (48%) might be using their rewards-based credit cards, but Gen Z tends to maximize their ability to earn points.
In fact, 25% of millennials and 19% of Gen Z surveyed state that they even use their points or rewards to pay off credit card purchases. In comparison, only 11% of boomers do the same.
Overall, 44% of participants said they use their points and rewards for groceries, and 33% of Canadians redeem theirs for travel.
As for those who use their points to see the world, 79% said they use theirs to cover the high cost of airfare, and 35% said they use their points to pay for accommodations; however, only 18% use points for car rentals, 18% use theirs for cruises, and a mere 11% redeem theirs for other activities.
How do you redeem your credit card rewards?