Welcome Back, Fellow Parent
For years, I’ve been using credit cards for nearly every purchase—and it’s not about racking up debt or living beyond my means. It’s about being intentional and using the system to work for me.
Gif by oceanpark on Giphy
I use credit cards for every possible purchase for three main reasons:
Earn Rewards: Think about this: every grocery run, gas fill-up, or Target spree could be paying you back. Cashback, travel miles, and reward points stack up fast if you’re consistent. For example, I’ve turned everyday purchases into free flights and gift cards—just by using my credit card strategically. The key is to pick a card that aligns with what you spend on most.
Build Your Credit Score: Think of your credit score as your adult report card. By paying off your credit card in full and on time every month, you’re building a solid score that opens doors to better loan rates, mortgage approvals, and more. For me, this strategy paid off big when we bought our first home. A great credit score gave us access to competitive rates that saved us thousands over the life of the loan.
Use My Money More Efficiently Each Month: Another great reason to use credit cards over cash is that you can postpone using your cash until later, essentially giving you more flexibility throughout the month. Done right, it’s like playing with house money and earning rewards for it.
Here’s the golden rule…pay your bill on time, every time. Avoid carrying a balance if you can help it—that’s how credit card companies make their money, and the interest rates are no joke.
Credit cards often have interest rates in the 20% range, compared to personal loans or home equity loans, which might offer much lower rates, like 11%.
If you’re carrying a balance now, start by tightening your budget and prioritizing paying it down. This will save you money in the long run and free up cash flow.
Not sure what to do with your cash while you’re waiting to pay off your credit card bill?
If you’re on a tight budget, keep it in a high-yield savings account. These accounts offer better interest rates than standard savings accounts, and you’ll still have instant access to your funds.
Want to take a little risk?
Consider short-term peer-to-peer lending or investing in an index fund through a brokerage account.
Everyone’s situation is different, so talk to your bank about what works best for you.
Money News
Here’s a quick roundup of interesting things happening across the markets:
#1: Gold prices are sky high. Spot prices have climbed from around $2,295 per ounce a year ago to roughly $3,330 today, marking a ~45–47% gain. It’s now cruising near yearly highs (peaked around $3,450/oz) after breaking record levels earlier this spring. Why the rally? A perfect storm of trade-war jitters, soaring demand from central banks, and inflation fears have driven investors into the yellow metal hard.
#2: Klarna just put the spotlight on stress in U.S. wallets—their newest data shows rising trouble with “buy now, pay later” (BNPL) plans as credit losses jumped 17% to $136 million in Q1, and delinquencies ticked up from 0.51% to 0.54%. They’re sounding the alarm that more Americans—especially younger and minority borrowers—are relying on BNPL for everyday essentials like groceries and utilities.
#3: Inflation’s still steady despite tariffs—May’s CPI rose just 0.1% month-over-month and 2.4% year-over-year, keeping prices mostly in check. Gas prices dropped roughly 12% year-over-year—helping keep inflation tame—while clothing and airfare actually fell too. That said, services like rent and insurance are climbing, and tariff impacts haven’t shown up yet—but economists warn they could arrive later this summer. For now, the Fed looks likely to hold rates steady
If you’re looking for additional interesting things to read, below are a few free newsletters I recommend, from one parent to another. Make sure to confirm your subscription to give them a try.
Outro
Have you recently broken up with a bad financial habit or made a money-saving switch?
Hit reply and share your story!
I’d love to hear what’s worked for you—and who knows, your tip might inspire another parent to take the leap.
See you next week,
The Dollar Dad
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