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Are you a parent looking to stretch your budget further? Cash back credit cards might just be the answer. With the constant stream of expenses that come with parenthood, every little bit of extra cash helps. But to truly make the most of your cash back credit card, you need a strategy tailored to your unique spending habits and family needs.

Let’s dive into how you can maximize those rewards and make your cash back credit card work harder for you.

Know your spending habits

Being a parent means juggling many expenses, from diapers to school supplies to extracurricular activities. Understanding where your money goes each month is crucial in choosing the right cash back credit card.

Take stock of your spending habits — are you a frequent Amazon shopper for diaper deliveries, or do you find yourself constantly on the road for your kids’ activities? By identifying your spending patterns, you can select a card that offers the most rewards in your biggest spending categories.

Choose your card wisely

Once you’ve identified your spending habits, it’s time to choose the right cash back credit card. Look for a card that aligns with where you spend the most money. Whether it’s groceries, gas, or online purchases, there’s a card out there tailored to your needs. Bonus category cash back cards can offer extra rewards in specific spending areas, while flat rate cash back cards provide consistent rewards across all purchases.

Take the Discover it® Cash Back: Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically. That cash back in the first year can potentially result in significant rewards (see rates and fees). This card is a standout choice for parents looking to maximize their cash back earnings when they have kids eating up a storm.

Take advantage of bonus offers

Many cash back credit cards come with enticing sign-up bonuses and welcome offers. These bonuses can quickly boost your rewards balance, especially if you have significant upcoming expenses. Look for cards that offer cash bonuses or statement credits to meet minimum spending requirements within the first few months of account opening.

For example, the Blue Cash Preferred® Card from American Express offers a market-leading 6% Cash Back at U.S. supermarkets on up to $6,000 per year in purchases (then 1%). 6% Cash Back on select U.S. streaming subscriptions. 3% Cash Back at U.S. gas stations. 3% Cash Back on transit (including taxis/rideshare, parking, tolls, trains, buses and more). 1% Cash Back on other purchases. Cash Back is received in the form of Reward Dollars that can be redeemed as a statement credit or at Amazon.com checkout. (terms apply, see rates and fees.) This isn’t a free card, but the outstanding cash back rates can easily make up for it, and you’ll start off with a $0 intro annual fee for the first year, then $95.

Optimize bonus categories

If your cash back card offers rotating bonus categories, make sure to stay on top of them. Activate the quarterly bonuses and adjust your spending accordingly to earn higher cash back rates. Whether it’s groceries, dining out, or online purchases, maximizing rewards in these categories can significantly boost your cash-back earnings.

Consider options like the Chase Freedom Flex℠, which offers 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. By activating these bonus categories and strategically planning your spending, you can maximize your cash back rewards throughout the year.

Complement with flat-rate cards

To further maximize your rewards, consider complementing your bonus category cards with a flat rate cash back card. These cards offer consistent rewards on all purchases, making them perfect for expenses that may not fall into bonus categories. Paying bills and other non-category purchases with a flat rate card ensures you earn cash back on every transaction.

For example, the Wells Fargo Active Cash® Card offers an unmatched 2% cash rewards rate on all purchases, making it an excellent choice for everyday spending (see rates and fees). By pairing it with a bonus category card, you can cover all your bases and maximize your cash back earnings across the board.

Mastering cash back credit cards as a parent requires a strategic approach tailored to your unique spending habits and financial goals. By knowing your spending habits, choosing the right card, taking advantage of bonus offers, optimizing bonus categories, and complementing with flat rate cards, you can maximize your cash back earnings and make your money work harder for you and your family.

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