What is the dollar value of an AIR MILE point?
The easiest way to consider the value of your AIR MILES is by figuring out what their dollar value is. Sadly, 1 point does not equal $1 (if only!), and furthermore, the dollar value of an AIR MILE isn’t consistent. It varies depending on the reward and sometimes even within the reward category itself. For example, if you are looking for a flight you will notice you need a different number of miles depending on when you want to fly (high vs. low season).
Nonetheless it’s helpful to work with an average mile value when calculating the collective value of your miles. A number of Canadian personal finance resources have compared the dollar values of AIR MILE points and calculated that the average value is between 10-15 cents per mile. We err on the side of caution, and estimate the average AIR MILE value to be $0.105.
Why should you care about the dollar value of your AIR MILES?
Some of you may wonder why you should care about the value of your AIR MILES. After all, these AIR MILES that you accumulate over time are basically just a bonus; what does it matter what their dollar value is if you aren’t technically paying for it?
This is an understandable mentality, but at the same time, don’t you want to make the most out of your AIR MILES and maximize your rewards? Understanding what your points are worth can go a long way when you’re ready to make an air miles redemption. The fewer points you spend, the more you’ll have to use later.
How are AIR MILES points accumulated?
Knowing how to accumulate AIR MILES is also important, since earning points quickly should be the goal of any points collector. Fortunately, collecting AIR MILES can be done quite easily. First you need to sign up for an AIR MILES membership card which will allow you to earn points at participating merchants. You can then increase your earn rate by signing up for an AIR MILES credit card. There are a few features of AIR MILES credit cards that you can compare directly to determine which is the most lucrative in Canada.
When selecting a credit card within the AIR MILES rewards program, one feature you’ll definitely want to look out for is the card’s sign-up bonus. Some cards may provide a small sign-up bonus immediately following the first purchase made with the card, but the more substantial bonuses usually require cardholders to spend a minimum amount within the first three months of card membership.
Earn rates for spending
Another consideration to keep in mind is the credit card’s earn rate for spending, or in other words, the amount a cardholder needs to spend to generate AIR MILES. Generally speaking, you’ll need to spend $20 in store to earn 1 AIR MILE when you show your AIR MILES membership, but you can ‘double dip’ by using your credit card to pay.
- This post was not sponsored. The views and opinions expressed in this review are purely my own.