Gen Z is turning to credit card rewards to offset everyday costs

Young consumers are using points and cash back to get more value from their spending.

Jordan Sheehy didn't know much about credit cards when he first got one at age 19. But he knew building credit at a young age could be helpful later in life, especially for things like applying for a mortgage. Then came the perks: the more he spent on his credit card, the more points and cashback he earned. "It's really nice to have points as a bit of an emergency fund for an unexpected expense," he says.

The 23-year-old university student based in Victoria, Canada, has three credit cards, which he uses for different things, including groceries, gas and travel. His Costco credit card earns him about C$130 (US$91) a year in cashback, enough to cover his Costco Executive membership. He uses his CIBC Aventura Visa card for travel and Airbnb stays, accumulating about 13000 points a year worth roughly C$300 ($210.25). His other card provides between 2% and 6% cashback on everyday purchases, like subscriptions and food.

"If my groceries are going to increase in price, I have these points that I can use to go towards those groceries," Sheeney said.

Sheeney says he went down a rabbit hole researching which credit cards offered the best value, often turning to AI tools to help weigh the fees against the rewards. As he sees it, cautiously experimenting with credit cards makes sense while he's still at university, even if it temporarily hurts his credit score. "While you're young, it's better to take those risks if you're going to take them," he says.

The wider trend

According to a 2026 survey by Citizens Financial Group, 44% of Gen Z and 19% of millennials reported that credit card rewards have made a significant difference for their households, whether by helping offset costs, access experiences, or get more value from their cards. The survey also found that 35% of Gen Z respondents want their rewards to help them reach a bigger financial goal.

Stacy Francis, president and CEO of Francis Financial, says credit card rewards can be useful, but only when used wisely. "Never spend money that you would not have normally spent just to get rewards," she says. Francis advises setting up autopay to pay off the entire balance each month. For cards that charge a fee, she says consumers should make sure the benefits are worth the cost. "Never ever leave balances on your credit card that cause huge interest payments," she says.