The Average Boomer May Be Leaving Thousands of Dollars On The Table

Spending with cash and debit cards sounds like the financially responsible thing to do, especially for a Baby Boomer who’s grown allergic to credit card debts. And while sticking with debit and cash can be the better option for those who have difficulty tracking their spending and constantly go over the monthly budget while leaving bills unpaid, I do think that those who stay on top of monthly bills have a good chunk of cash to gain by leveraging a good credit card, including those with annual fees.

Indeed, for those who spend a great deal on groceries, dining, and all the sort for a large family of six (or more), the difference between using a credit card and debit (many of which tend to earn you zero in the way of rewards) could work out to a few hundred or perhaps even more than a thousand in cash back or rewards points over the course of a decade.

Add the promotional offers, other perks, buyer protections, and more into the equation, and it’s clear that there is an incentive to stay on top of things so that one can get the pluses of credit cards without falling victim to the minuses (most notably, unpaid credit card debts that accumulate significant interest month over month).

Baby Boomers may not be aware of the benefits of swiping that credit card

Indeed, a lot of credit cards tend to be marketed heavily towards younger people. Indeed, travel experiences, dining, and VIP perks to get concerts to the latest hit show seem better catered towards Millennials or those in the Gen Z cohort. While there are still a ton of great credit cards out there for Baby Boomers (retirement travel), I do think that many Boomers aren’t taking full advantage of the opportunity to save a few bucks or get a free trip by effective use of credit cards.

But really, who can blame them? The art of credit card churning (or hacking) is more of a young person’s pursuit, especially given that a lot of the tips and tricks tend to be shared on communities more populated with younger audiences.

In any case, I do think there’s a strong case for educating oneself on the types of options out there and how they can maximize one’s return (whether via points or cash back) from credit cards. Of course, one must ensure that all balances are paid off at the end of the month because it really only takes a missed payment or two before the “uplifting” effects of credit card perks are pretty much nullified.

What good is saving a few hundred a year if you’re just going to end up spending thousands in interest on your unpaid balances?

Food inflation is still a problem. A grocery and dining-focused card is the perfect weapon to fight back.

For many Baby Boomers living on a fixed income, food inflation really stings. A great way to offset the soaring costs of food and other necessities is to have a card that offers great returns on goods purchased from eligible supermarkets. Indeed, if you’re a Boomer who has a full house to support, you could find yourself spending close $2,000 on U.S. supermarket purchases a month.

With the right credit cards in place (think a good grocery-optimized card), these purchases could result in well over $1,000 in cash back at the end of the day. Of course, some cards have caps on rewards on category-specific purchases. That’s why it’s vital to have different cards that you can utilize to maximize your returns on expenses.