As part of your 5-minute budget, you already know how much you spend on regular food shopping each week.
The average Australian household pays $184 each week on their supermarket shopping alone, according to Finder's Consumer Sentiment Tracker in June 2024. And we all gotta eat.
So, one way to get more value is by earning points through a credit card.
(Tip: if you already have credit card debt, skip this step but check out balance transfer offers to get any interest charges under control.)
Chances are, earning points is something you already do, as Finder research shows 91% of Australians are signed up to at least 1 loyalty program.
A rewards credit card means you can earn points twice: once through the card and once through your supermarket loyalty program.
The average Australian can get up to $50 in value each month from earning points on regular credit card spending, worth $600 in a year*.
That's based on earning 1 point per $1 spent.
The actual value depends on how you use points, but Finder's points calculator is a quick way to estimate the dollar value.
One of the fastest ways to earn points is by getting a new card with an introductory bonus points offer.
As an example, let's take the Qantas Premier Platinum Credit Card.
It currently offers 50,000 bonus Qantas Points when you spend $3,000 on eligible purchases in the first 3 months.
And another 30,000 bonus points if you haven't earned Qantas Points on a credit card in the past 12 months.
If you got the maximum 80,000 bonus Qantas Points on offer, you'd get between $350 and $8,000 value depending on how you redeemed them.
And as far as the spend requirement goes, it's actually pretty close to what the average person would spend on a credit card in a month ($2,508)!
Wondering about other rewards programs?
Right now, you can get between 30,000 and 200,000 bonus points with a new credit card. A simple way to choose one is by comparing different cards in Finder's table. You can even sort by bonus points, annual fees and other key details before you apply.
Rewards credit cards typically have higher annual fees than basic cards.
This yearly cost is something you should consider to help decide if the value of the points you earn will balance out that cost.
You'd typically need to spend between $10,000 and $25,000 to earn enough points for a $100 gift card.
Flight rewards usually offer a much higher value than this. For instance, around 18,600 is enough for a business class flight on Qantas between Sydney and Melbourne, which has a retail value of around $750.
Some cards also offer lounge passes, travel credit or other perks you can factor in.
You can usually avoid interest charges for your everyday spending by paying off the total amount listed on your credit card statement.
But if you don't pay it all off or miss the due date, interest will be added to your balance.
The average credit card interest rate in Australia as of June 2024 is 20.16% and it can be higher for a rewards card.
So paying interest could quickly outweigh the value of earning points.
Some people regularly switch cards to make the most of bonus point offers.
But it can hurt your credit score if you do it too often.
As a basic guide, checking your credit score and waiting around 12–18 months before switching can help minimise the impact.
So if you're not getting much value from your credit card after the first year, it might be time to see what other offers are out there.
*Based on average monthly credit card spend of $2,508, and Finder's Points to Dollar calculator for Qantas Frequent Flyer
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