I am going to give tips on how to use your rewards credit card to earn money back. If you save up the rewards money you can use it when Christmas time comes around and you need a little extra to spend and help avoid carrying a balance on your credit card.
You will need to be sure you do not carry a balance on your rewards credit card, be sure you pay it off each month or you will pay out what you get in rewards in the interest charges.
What you want to do first is go over your monthly budget, groceries, gas, cell phone bill, phone bill etc. Find anything you can pay with your rewards credit card, you want to funnel all bills to that card. The more credit you have on the card the better, as it will allow you to put more on it before having to pay off the balance, however you always want to pay it off at the end of the month.
After going through your monthly budget and finding all items that you can pay using your rewards credit card with, set up bills to be paid with your rewards credit card, phone bills, water bill, electric bill, cell phone bill, etc. When you go grocery shopping use your rewards credit card, and also buy all your gas for your cars with your rewards credit card.
Another step you can take to even further your rewards earnings, if you have a flexible spending account for medical or even child/parent care. You might even have one of those nice debit cards, but you want to stop using that. You will have to submit manually to your flexible spending account, but by paying all medical bills, prescriptions, childcare/parent care through your rewards credit card you can rack up lots of extra reward money. Now you are saving taxes with your flex spending, and then earning more money by pushing it through your rewards credit card which you will pay off by submitting the medical bill with payment receipt to the flex spending company and will be paid back.
Find and open a checking account that you earn interest on your money, that way while your money sits in the account for the month you earn interest.
Pay your balance off every month, do not overspend, stick to your budget!