If Any Gen-Xer Is Using A Debit Card, They Should See How Much They Could Make By Switching

When you pay for goods and services in today’s day and age, you have a lot of different choices for how to complete the transaction. Cash is largely falling by the wayside, with some places actually going cashless now and requiring you to pay with a card. However, you can use either a debit or credit card, and many people link these cards to apps like Apple Pay for convenience. 

If you’re using a debit card, your payments come directly out of your bank account. Some people prefer this because it means they can’t end up in debt. However, for most people — except those who can’t trust themselves not to spend more than they can repay — credit cards are a better way to go. 

Credit cards are a good option for people of every generation, but let’s take a look specifically at how they could benefit Gen-Xers based on the spending they are doing.

Gen-Xers have spending habits that could pay off for them if they use cash back cards

If Gen-Xers do their research and find the best cash back card that offers them the maximum bonus rewards for their spending, many could make a good amount of money. 

Gen-Xers are between the ages of 45 and 60. To get an idea of how much they could earn in credit card rewards, let’s take a look at the spending habits of people in this demographic group based on data from the Bureau of Labor Statistics. 

The BLS records data based on age and provides information on spending. Among individuals who are 45 to 54, here is how much the Bureau of Labor Statistics data said each consumer unit spends. Consumer units include 2.9 people. These figures are based on mean spending, which is the overall average amount spent:

• $97,319 in total spending
• $12,941 on food spending, including $5,302 on food away from home
• $29,095 on housing 
• $5,481 on utilities
• $17,311 on transportation, including $3,233 on gasoline

Now, some of those expenses, like housing, unfortunately, cannot usually be put on a credit card. Mortgage lenders and landlords typically don’t accept cards because there is an added fee for doing so. They’ll want to get paid via check or autopay. 

However, most of these costs can be charged. What’s more, doing so could come with significant bonus rewards with the right credit card.

How much could Gen-Xers make using a cash back card?

So, how much could Gen-Xers make using a cash back card? A lot depends on the card.

Say, for example, that you had a credit card that provided 5% back on gasoline. With $3,223 in annual spending on gas, this could translate to $161.15 saved. Likewise, a card that provides 5% back on $5,302 spent at restaurants would provide $265.1 back. Or, a Gen-Xer who used their card to pay for their $7,639 in annual grocery bills could get $381.95. 

As you can see, we’re approaching the $1,000 mark just from those three costs alone, not even factoring in all the other purchases that could be charged from vacations to entertainment spending and more. The amount can add up very quickly — and Gen-Xers should be sure to use cards that make that happen. After all, who wants to turn down thousands of dollars in free cash just for making purchases you were going to make anyway? 

Now, Gen-Xers will need to decide between cards offering larger amounts of cash back for certain kinds of spending or getting a general cash back card offering a good rate, such as 2% back on all purchases. Some decide to have multiple types of cards they use strategically. The right approach depends on how much energy you want to devote to maximizing your card rewards.

The bottom line, though, is that most debt cards provide no rewards while cash back cards can offer a lot of money returned to you. Start looking into your options for cash back cards today to find a good one that can put some more money back in your bank account.

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