While I was walking Sugar yesterday, I found a penny on the ground. Now, some of you may be thinking, “Big deal. It’s just a penny.” However, when I was a little girl I learned that pennies turn into dollars.
So, I did what I’ve done since I was little. I picked up the penny, brought it home, and put it in my change jar. Over the years, I’ve used my pennies (and other change) to pay for groceries, concert tickets, and even to pay the illustrator to bring my Pupcake Sugar comic scripts to life.
I’ve never lost my excitement for finding pennies on the ground. I still find ways to turn pennies into dollars, and my favorite new method is using credit card cash back rewards to build my savings. In this blog post, we’re discussing how to use cash back rewards to build your savings and turn them into a savings strategy.
The Savings Gap in America: Why You Need Extra Help
All the experts were telling me to save. And you know what? They’re right. But sometimes saving isn’t as easy as people think it is. Especially, when you’re starting from scratch. Or using all your extra money to fund your dream.
After I got laid off, there wasn’t a lot of money left after my bills were paid. And it looks like I’m not alone.
- Only 37% of Americans say they could not cover a $400 emergency expense with savings.
- The median emergency savings balance is just $600, and 21% of Americans have none at all.
- Nearly one in four adults admit they have zero dollars set aside for emergencies.
(Source: Empower 2025 reports)
But I was still using my credit card, which had cash back rewards as a benefit. And those rewards were like finding a few unexpected pennies to turn into dollars for my savings.
What Are Cash Back Rewards and How Do They Work?
Cash back rewards are a credit or charge card benefit that gives you back a percentage of the money you spend (usually 1–5%) which can be redeemed as savings, statement credits, or cash. They are one of the simplest and most popular credit card perks.
In other words, they are a great way to turn pennies into dollars for your savings. Here’s how they work:
- Earn While You Spend: Each time you use your card, you earn a small percentage back—usually 1–2%—on the purchase amount.
- Flat, Tiered, or Rotating: Some cards pay the same rate across all purchases (e.g., 1.5%), while others reward certain categories (like 3% back on groceries). A few even rotate categories every quarter.
- Redeem Your Rewards: Once earned, rewards can be redeemed as a statement credit, direct deposit, gift card, or even applied toward travel.
Essentially, cash back rewards works like a digital coupon system. You shop for what you need, and the card company pays you back a fraction of the purchase.
3 Reasons Cash Back is a Smart Savings Strategy
I said it before, and I’ll say it again. Starting from scratch takes dough. And so does having a dog. So, a few extra coins from your cash back rewards help me stack my savings a little higher without having to look too hard for the extra cash. Here’s why cash back rewards work.
- Accessibility – I was already spending on everyday essentials like groceries, gas, and pet supplies. My cash back turns that spending into a tool for building savings, no matter your budget size.
- Psychological Win – Instead of feeling guilty about spending, I viewed my rewards as “bonus savings.” This reframing made financial planning feel intentional rather than restrictive
- Low Friction, High Impact – Redirecting cash back rewards into my savings account was seamless. No budgeting was required, and it was cool to watch those pennies grow into dollars every month.
Dog Mom Math: Turning Cash Back into Real Savings
Dog Mom Math always shows up when you need it. And this is a classic example of Dog Mom Math Rule #2: “Discounts aren’t spending, they’re saving.”
I think of cash back rewards as a built-in discount. The store charges full price, but my card gives me part of it back. That “discount” turns into savings to help me reach my financial goals.
Here’s a quick example:
- You spend $1,000 per month on groceries and pet supplies.
- A 2% cash back card gives you $20 back.
- That $20 is automatically transferred it into my savings account, which grew into $240 in one year.
I’m not gonna lie. The cash back rewards doesn’t feel like a lot of money at first. But over time those “pennies” grow. In fact, that $240 I saved over the year covered Sugar’s annual flea and tick preventative.
6 Realistic Ways Dog Moms Can Use Cash Back to Build an Emergency Fund
I’ve learned that the best cash back rewards strategy is that you need to identify how you’re going to use the money before you start saving.
My cash back rewards are for Sugar’s flea and tick preventative. It’s not the most glamorous expense. But it reduces an annual bill and gives me additional funds to spend on something else. Hare are a few ideas for your cash back rewards.
Dog Mom Lifestyle Uses:
- Vet Emergencies – Unexpected vet visits can run $200–$1,000. Cash back rewards can serve as your “vet buffer fund,” helping you cover co-pays or medication costs without dipping into your main savings.
- Dog’s Birthday Gifts & Treats – Between food, pupcakes, toys, party supplies, a cute birthday celebration for your dog can add up. Use the cash back rewards to spend on your dog’s birthday gift and treats. And for inspiration on those pupcakes, check out Sugar’s Dish.
- Pet Rent or Fees – Many apartments charge pet rent or deposits. Use rewards to help cover these recurring expenses, it turns an unavoidable cost into an opportunity to build financial resilience.
General Lifestyle Uses:
- Concert or Event Tickets – Instead of letting rewards disappear into everyday spending, save them up for something fun, like tickets to see your favorite artist. That way, your leisure doesn’t feel like a budget breaker.
- Home Quick Fixes – “Shh…” happens. Especially, when you least expect it. From replacing cookware, home expenses, or car repairs. Having the extra cash on hand can help you manage those unexpected costs.
- Investment in Your Dream – Sometimes having a little extra cash is all you need to fund your dream. Whether it’s a side hustle, entrepreneurial venture, going back to school, etc., investing your “pennies” can turn that idea into dollars.
Ready to Use Cash Back Rewards to Boost Your Savings?
See. Pennies can turn into dollars. It just takes time. Using cash back rewards to build your savings was another way I learned to put those pennies to good use.
And yes. My 5-year-old self still gets excited when I find a penny on the ground. Several pennies later, I’m still learning that it’s not what you have. It’s what you do with it that makes the difference. And my intention is to invest these pennies wisely, so they’ll continue to grow into dollars.
Now, we’d also love to hear from you. How do you use your cash back rewards?
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