With so many credit cards on the market, it can be challenging to navigate which one is the most optimal for you and your living situation. Today, as more and more banks are offering family credit cards, families around the globe are reaping the most beneficial rewards possible for their households.
If you are thinking about adding a credit card to your family’s finances, here are five benefits of a family credit card for you to consider.
1. It will keep you on track with your spending.
Having a family credit card can be an essential means for tracking your family’s expenditures. Only by monitoring where your money goes (and how frequently) will you be able to feel entirely in control.
Having a family credit card can assist you in budgeting because it provides you with 30 days to pay off your balance, interest-free. This is especially important when you are looking to balance your cash flow throughout the month and between paychecks.
Additionally, if you consistently use your family credit card when spending, you will be able to track every expense that is made. This can assist you in creating future budgets and examining your family’s financial health.
The best family credit cards also come with useful online tools that encourage you to categorize and chart your expenses.
2. It provides rewards for where you are already spending your money.
Between gas, groceries, education, clothes, and the like, being the head of a family means performing a lot of transactions. While many credit cards offer a variety of rewards and benefits, a family credit card is suited for (guess who?!) a family!
Generally, family credit cards offer rewards and cash back on the purchases that families tend to have to make anyway. As gas and groceries are usually the most significant expenditures in a family household, look for a family credit card that provides these types of rewards.
Additionally, some of the superior family credit cards may also offer complimentary life insurance and other similar perks.
If you are in a position to always pay off your balance, putting all your expenditures on a credit card means racking up benefits and rewards a lot quicker.
3. It helps you take a family holiday.
Just because you are providing for a family, doesn’t mean you shouldn’t be able to gather everyone up and go on a holiday every once in a while! Many family credit cards offer meaningful reductions on travel and entertainment when you book with your family credit card.
For example, you could enjoy up to 5% discounts on flights, up to 10% discounts on hotels and up to 15% discounts on local entertainment.
Your credit cards and hard-earned cash should be working for you, not the other way around. Do your research and explore all of the options until you find a credit card that is going to bring the most excellent benefits to your family.
4. It can help you teach your children about money.
While you may not believe that you are in a position to teach your children strategies for financial literacy, the fact of the matter is that they have to learn something from you regarding money.
One of the biggest lessons you need to teach them is that having a credit card means borrowing from others, which comes at a price. By involving them in (some of) the family credit card transactions, you can show them that while credit can be a valuable tool, it also is something to be taken seriously and doesn’t equate to “free money.”
Additionally, you can use the credit card bills to show your children how much money is required to operate a home.
5. It has all the benefits of a “regular” credit card.
Just because it is a “family” credit card, doesn’t mean that it doesn’t include all the perks of a regular credit card. By applying for and obtaining a family credit card, you will be able to take out an ADCB bank personal loan or a credit card loan, split your everyday purchase transactions into an individual payment plan, build up your family’s credit, and invest in yourself and your life.
Have you considered applying for a family credit card? Why or why not? Let us know your thoughts in the comments below!