I’m guilty of hoarding credit card reward points, or at least I was until my wife talked me out of it. She likes using points in little bunches to get tangible benefits on an ongoing basis. I liked saving points for a big bonus.
What finally swayed me was the number of times our points programs have been changed in a way that either devalued our accumulated points or required us to blow them off quickly to preserve value. Now, I redeem points often instead of hoarding like so many others. The results of a recent poll sponsored by PC Financial document the extent to which people hang onto their points. The approximate dollar value of the loyalty points there currently carry for poll participants was $832. That’s based on an average of $357 for millennials, $775 for people aged 35 to 54 and a whopping $1,246 for those aged 55 and up.
The total value of accumulated points reflects participation in multiple loyalty programs, but most people have one or two plans they use the most. Assess your strategy for those programs – if you’re hoarding and not getting great rewards, then how about using your points as you accumulate them? This may not get you the greatest possible bang for your buck, but getting small rewards on a regular basis can be very satisfying.