Cashback or Giftcard? Latte Factor Hits Home!

United States
March 25, 2008 9:41pm CST
I have earned $40 cashback on my Discover card. I can get a $45 Starbucks gift card instead of getting cash and stretch my money further. I love Starbucks and it's a special treat for me and I only go when I have a gift card. However, this year, I've been saving all the extra cash I find each month (outside my normal pay check) and investing it or paying it towards debt. I ran a few calculations and if I paid that extra $40 towards my home equity loan, it would save $197 in interest over the life of my loan. Talk about your latte factor! Who would have ever thought how you elect to spend $40 could make such a big difference. What would you do? Would you treat yourself to Starbucks or stay disciplined and put the extra payment towards reducing debt?
1 response
• United States
26 Mar 08
I never thought that $40 would make that kind of difference. I will be thining a lot different about the few dollars I spend here and there. I have always thought it adds up but I never knew that it added up like this. Thanks.
1 person likes this
• United States
27 Mar 08
I was more than a little surprised myself. I hear the term "latte factor" all the time - but when I actually ran the numbers I got a shock.