South Africans love rewards programmes. And honestly, who can blame us? The idea sounds fantastic. Spend money. Earn points. Get discounts. Enjoy free coffee, flights, fuel, groceries, or gadgets. What's not to like?
The problem is that rewards programmes can sometimes turn smart people into surprisingly enthusiastic spenders. And that's exactly what makes them so effective.
The Great Rewards Illusion
Let's start with a simple question. Have you ever bought something and thought "at least I'm getting points"? If the answer is yes, congratulations — you're human. We've all done it.
The clever part isn't the points. The clever part is how rewards programmes make spending feel productive. Instead of feeling like money is leaving your account, it feels like you're making progress towards something. A flight. A voucher. A free coffee. A blender you'll probably use twice.
Suddenly spending feels less painful. That's powerful psychology.
The Numbers Don't Lie
Imagine you spend R10,000 per month on a card. A generous rewards programme might return somewhere between 1% and 3% of that spending in value.
| Rewards Rate | Monthly Value on R10,000 Spend | Annual Value |
|---|---|---|
| 1% | R100 | R1,200 |
| 2% | R200 | R2,400 |
| 3% | R300 | R3,600 |
That's not nothing. Over a year it adds up. But here's the important part: if you spend an extra R1,000 chasing rewards, you've probably destroyed most of the benefit. Many people focus on the reward. Very few focus on the spending required to earn it.
The "I'm Saving Money" Trap
One of the funniest tricks rewards programmes pull is convincing us we're saving money when we're actually spending it. Let's say a shop offers: spend R2,000 and earn double points. Sounds great. Until you realise you only planned to spend R1,200.
You didn't save money. You spent R800 more than intended. The reward didn't create value. Your spending did. The programme simply made the decision feel better.
Any time a "deal" requires you to spend more than you originally planned to unlock a reward, run the maths before you decide it's a good deal. Most of the time, the extra spend outweighs the reward.
Some Rewards Programmes Can Be Fantastic
To be fair, not all rewards programmes deserve criticism. Some are genuinely valuable — particularly if you already spend consistently, you pay off your credit card every month, you understand the rules, and you regularly redeem your rewards.
That's the key. The best rewards programmes reward spending you were already going to do. The worst ones encourage spending you wouldn't have done otherwise. There's a huge difference.
A Quick Reality Check
- Do I know how much value I earned last year?
- Have I actually redeemed my rewards?
- Do I change my spending habits because of rewards?
- Am I paying higher account fees just to access these benefits?
If you don't know the answers, you're not alone. Many people know how many points they have. Very few know what those points are actually worth.
The Smart Way to Use Rewards
Think of rewards like a bonus. Not a reason. The spending decision should make sense first. The rewards should come second — not the other way around.
If you were going to buy groceries anyway, fantastic — earn the points. If you're buying things purely because a programme tempted you, the programme is probably winning more than you are.
The best rewards programme isn't necessarily the one with the most points. It's the one that gives you value without changing your behaviour.
The Bottom Line
Rewards programmes aren't scams. But they're not charities either. They exist because they encourage customer loyalty and spending. That doesn't mean you shouldn't use them. It simply means you should understand the game you're playing.
Because the easiest way to save money is still remarkably old-fashioned: spend less than you earn. No points required.