It’s no secret that most Americans struggle to save effectively for retirement. It can be difficult to allocate money in your budget so you can make regular contributions. Often people are so focused on making ends meet today, that saving for the future gets moved to the backburner.

Thankfully, technology is evolving to make it easier to save for retirement. Cash-back apps like EvoShare link retirement savings to purchases you make every day. That way retirement savings becomes automatic, so you don’t even have to think about investing. It just occurs naturally.

What is a cash back app?

A cash back app works similarly to a cash back rewards credit card. When you make purchases at certain stores and online retailers, you earn a certain percentage of cash back. However, with a cash back app, these funds are automatically funneled into a retirement account you link to your account. This makes retirement savings automatic so you can start to build wealth without any extra effort.

How cash back retirement apps work

  1. First you choose the app that you want to use. Make sure to check:
    1. Which retailers they work with
    2. What types of retirement accounts you can tie your app to
  2. You choose to link as many debit cards or credit cards as you want to your account. The more cards you link, the more cash back you can earn.
  3. Then you shop as you usually normally do, using retailers from the app’s approved list.
  4. With each purchase you make, you earn a certain percentage of cash back.
  5. That money is then funneled into the retirement account you link to your app.

With most cash back apps, they don’t provide retirement accounts directly. You need to have a retirement account set up separately to use this service.

5 Things to Know about Using Cash Back Apps

#1: If you don’t have a retirement account, they can hold the funds

Apps like EvoShare allow you to hold money in your account until you set up a retirement account. For instance if you’re finishing a probationary period with your employer to qualify for a 401(k) you can hold the funds until you open the retirement account.

#2: Some apps allow you to contribute to a family member’s retirement plan

In some cases, you can also transfer the cash back that you earn into a family member’s retirement account. So if your spouse has a Roth IRA in their name, you can assign that as the account to invest in. This can be a good advantage so purchases from both partners can earn cash back even if only one of you has your name on the retirement account.

#3: The amount of cash back varies by offer

Some retailers and merchants off 2% cash back, while others may offer up to 20% cash back. Others offer cash back up to a certain dollar amount. Participating retailers vary by which app you choose. Obviously you want to choose an app that has the widest selection of retailers or the one that fits where you like to shop.

#4: Rewards may even be earned locally

EvoShare not only offers cash back on online retail purchases, but also purchases made at brick and mortar businesses and even local restaurants. The catch is that most of these apps are fairly new, so they may have limited access to only local retailers where they’re based. For instance, EvoShare is based in San Francisco, so all local deals are centered in northern California… at least for now.

#5: You can apply the money to more than just retirement

Some programs are not limited to contributions to a retirement account. Our featured partner EvoShare also allows you to use the money to repay a student loan debt.  You can also donate a portion of the cash back you earn to a specific charity of your choice.

Why Debt.com recommends EvoShare

Debt.com recommends this cash back retirement app
EvoShare is a first-of-its-kind application that revolutionizes the way you can contribute to your retirement. The fact that you can use the same service to pay off student loans gives it double the clout as a must-have financial app. Although local restaurant and retail access may be limited to northern California, there are over 300 online vendors, including up to 10% cash back from Groupon, up to 3% at Macy’s and up to 4% cash back at Target, Walmart and Kohl’s.

EvoShare also gives you more cash-back earning power. So if you also use a cash back rewards credit card, you’re doubling up on the cash back you earn. For example, Chase Ultimate Rewards offers 4% extra cash back on Groupon purchases. If you tie a Chase Freedom credit card to your EvoShare account, then you earn 4% cash back from Chase and another 10% from EvoShare for your retirement account. Purchasing power is a beautiful thing.

Learn more about EvoShare and sign up today!