The holiday season brings joy, togetherness, and unfortunately, often hefty price tags. According to U.S. News, Americans are increasing their spending during this festive period. But before you surrender to the financial strain, consider these savvy cashback hacks that can help you enjoy the holidays while padding your wallet for 2026.
Think Beyond Travel Perks
Many associate rewards points with luxurious vacations or hotel stays. However, insurance and finance expert Anna Baluch from BestMoney.com highlights a lesser-known benefit: using those points to offset everyday expenses. “You can often convert travel miles or credit card points into cash credits or discounts directly on your bills,” she explains.
Imagine having accumulated hundreds of dollars’ worth of points that could instead lighten your holiday debt load. By converting them into bill reductions, you essentially turn rewards into practical breathing room in your budget.
Maximize Cashback Limits Strategically
While some credit cards offer attractive 5% cashback on categories like groceries or gas, these bonuses often come with spending caps per quarter. Baluch advises against letting those limits blindside you: “If you stop tracking after hitting that cap, you lose out on potential savings.”
Instead, strategically spread your purchases across different cards to continuously maximize the high-earning percentages offered by each card. This seemingly small effort can add up to significant savings throughout the year.
Time Your Purchases for Maximum Returns
Planning a big holiday purchase like a new TV or furniture? Baluch emphasizes that strategic timing can unlock even greater cashback rewards.
“Look out for category bonuses offered by your credit card issuer around the holidays,” she says. These bonuses often layer extra percentages on top of your regular card rewards. You might even discover combined returns exceeding 10%. Through such calculated purchases and strategic use of cashback portals, you can save a substantial amount—even over $100—on a single big-ticket item.
Turn Cashback into a Budget Strategy
Baluch emphasizes that treating cashback like an afterthought is missing out on its full potential. “Think of your points and spending caps as readily available savings waiting to be unlocked,” she suggests.
By actively planning purchases around bonus periods, leveraging cashback portals, and using your rewards strategically, these seemingly small choices can contribute significantly to your financial well-being in the coming year.
