Jordan Sheehy, a 23-year-old university student from Victoria, Canada, is among the growing number of Gen Z individuals using credit card rewards to ease everyday financial burdens. Initially, he didn't have much knowledge about credit cards when he acquired his first one at just 19. However, he recognized the importance of establishing credit early, particularly for future significant purchases like a mortgage. What initially attracted him was the reward system: the more he charged to his credit card, the more points and cashback he received.
As part of his credit strategy, Sheehy manages three different credit cards suited for various purchases, including groceries, gas, and travel expenses. His Costco card yields approximately C$130 (around US$91) annually in cashback, which conveniently covers his Costco Executive membership fee. For travel and Airbnb bookings, he relies on his CIBC Aventura Visa card, accruing about 13,000 points per year, which translates to roughly C$300 (US$210.25). Additionally, he operates another card that offers cashback ranging from 2% to 6% on everyday purchases like food and subscriptions.
Financial Safety Nets
"If grocery prices rise, I can use these points to help cover those higher costs," Sheehy explains, highlighting the practical benefits of points accumulation.
Sheehy became quite the expert in choosing the best credit cards. He often utilized AI tools to evaluate the rewards against the fees associated with each card. He believes that experimenting with different credit cards is a smart move during his time in university, even if it slightly impacts his credit score. "While you’re young, it’s wise to take calculated risks," he states.
A Broader Perspective
This behavior is not isolated to Sheehy alone; research reveals that many Gen Z individuals are turning to credit card rewards as a strategy to enhance their financial management. A survey conducted by Citizens Financial Group in 2026 indicated that 44% of Gen Z and 19% of millennials reported that credit card rewards have played a significant role in their household financial strategies, helping them manage costs and acquire experiences that add value to their lives. Furthermore, the same survey showed that 35% of Gen Z participants aspire to use rewards to attain larger financial objectives.
Expert Advice on Reward Management
Stacy Francis, the president and CEO of Francis Financial, emphasizes the importance of using credit card rewards judiciously. "It’s essential to avoid spending money you wouldn’t normally spend just to earn rewards," she cautions. To maximize the benefits of credit cards, she recommends setting up autopay, ensuring the entire balance is cleared each month. For cards that incur annual fees, Francis urges consumers to assess whether the benefits outweigh the costs. She firmly advises against carrying balances that could lead to hefty interest payments.
In conclusion, with the right approach, credit card rewards can serve as an effective tool for young consumers like Sheehy and his peers to navigate financial challenges and enhance their budgeting strategies.
Tag: Credit Cards