I am always looking for new ways to save money on groceries, so I was pleased to hear that one chain, Kroger, has recently come up with a real winner. Beginning in May and lasting through the end of July customers can exchange their tax-rebate checks for Kroger gift cards to get a 10 percent bonus on the card’s face value throughout Kroger stores nationwide (including Kroger, Baker’s, City Market, Dillons, Fred Meyer, Fry’s, Gerbes, Hilander, Jay C, King Soopers, Owen’s, Pay Less, Ralphs, Smith’s and QFC stores).

Shoppers can purchase cards in increments of $300 (to receive a gift card worth $330), $600 (for $660 value) or a maximum of $1,200 that would earn a gift card worth $1,320. If the tax-rebate check exceeds these increments, the customer would get cash as change. For example, if a customer has a tax refund or stimulus check of $415.50, the customer will receive a Kroger gift card valued at $330 (at a cost of $300) and the remaining $115.50 will be returned to the customer in cash. (Please note that the promotion is limited to one card per household).

Because groceries are unavoidable, and food prices are rising, I would encourage shoppers to consider any store promotion that, in effect, gives you free items.

To really benefit from these programs, smart shoppers know how to use these gift cards just like cash, rather than using them to buy extras they may not have purchased without the promotion. It is likely that the typical shopper responds to promotions like these by splurging on nonessential items with their “free” money. To really save, do not give in to that mentality. Use the gift cards while buying your typical groceries with sales, promotions and coupons. You may be able to turn that extra cash into far more with smart savings strategies.

For example, I will use this 10 percent gift card bonus as a starting point to save. Because of their loyalty card, Kroger-owned stores are able to offer shoppers automatic savings offers, such as giving shoppers cash off their order when they buy participating items. As I write this, my Kroger store is offering $4 off my order when I purchase four participating General Mills items. By combining the sale-priced General Mills items with coupons from the newspaper and the Web site www.eatbetteramerica.com, I will end up paying only 50 cents per box of cereal bars. I can take advantage of this promotion, sales, coupons and automatic rebates to stock up on products my family likes without breaking the bank. At this rate, it may take quite a while to use the bonus gift card up, which is fine with me.

 

Stephanie Nelson shares her savings tips as a regular contributor on ABC News’ “Good Morning America.” You can find more of her savings tips in her book  “The Greatest Secrets of the Coupon Mom” and on her Web site at www.couponmom.com. She can be reached at shoppingmom@unitedmedia.com.