The hidden cost of chasing loyalty points, nobody mentions

[Pete]

Loyalty programs are designed around a genuinely clever psychological trick, the promise of points makes ordinary purchases feel like they're earning you something extra, which quietly nudges spending habits in directions they wouldn't otherwise go. The actual hidden cost is the premium a lot of these programs bake into pricing itself, or the extra purchases made specifically to hit a bonus threshold that wouldn't have happened otherwise

Points also frequently expire, get devalued through program changes, or require redeeming through specific restrictive options that quietly reduce their actual real world value compared to what they looked like when earned. The time spent tracking multiple programs, checking balances and researching the best redemption options is itself a real cost that rarely gets counted alongside the supposed rewards

None of this means loyalty programs are worthless, plenty of disciplined users genuinely come out ahead. Curious whether people have ever actually calculated the real dollar value of points earned against the extra spending or premium pricing that came with earning them