Image source: Getty Images
The average American household spends $6,545 a month, according to Motley Fool Money research. Not all of that can run through a rewards card — but a lot of it can.
Let’s assume that roughly half of that typical spending ($3,250 per month) routes through a flat-rate 2% cash back card — that would earn around $780 cash back every year.
Here’s what the math looks like across a range of spending levels.
What 2% cash back actually earns you
The math is pretty simple — but it’s still surprising how fast rewards can stack up.
Here’s what a 2% rewards rate can earn in a year:
| Monthly Spend | Cash Back Earned |
|---|---|
| $1,000 | $240 |
| $2,000 | $480 |
| $3,000 | $720 |
| $4,000 | $960 |
| $5,000 | $1,200 |
| $6,000 | $1,440 |
My wife and I typically spend between $3,500 and $4,000 per month on our credit cards. That puts us somewhere in the $840-$960 range in rewards each year.
See our top-rated flat-rate cash back cards here — many have no annual fee.
The case for one card that does everything
I used to play the points game, splitting our family spending across four or five different rewards cards. And it paid off for a while, but eventually became really exhausting to manage and track it all.
So I made the switch to just using a single credit card with a solid 2% flat rate on everything — and I haven’t looked back.
Now I only have one app to log into, one statement, and I never have to remember which card to use when I’m out spending.
For the average American putting several thousand dollars a month on a credit card, I honestly recommend keeping rewards as simple as possible.
Cash back vs. points: which is better
This is probably the question I get asked most as a credit card nerd, and the honest answer is: it depends.
Cash back is the most straightforward form of rewards. You know exactly what you’ve earned, and you can redeem it as a statement credit or direct deposit easily.
Points and miles are a different animal. Every program has its own redemption value, and squeezing the most out of them takes a little education.
Full disclosure — my main card is actually a travel card that earns miles. But the baseline earn rate works out to 2% in value when I redeem them, and it comes with extra travel perks I like. So in a way, I’m still in the flat-rate camp, just using a different point system vs. cash back.
The simplest system still pays $780 a year
For most people, flat-rate cash back cards win on simplicity alone.
And if the average American spends $3,250 per month on a card earning 2% rewards, that’s an easy $780 back in their pockets for no extra effort at all.
See all the top rewards cards our team recommends for 2026.
Alert: highest cash back card we’ve seen now has 0% intro APR into 2027
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes.
We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.
