Search for how to save money at Starbucks, and you’ll find millions of results. People love finding ways to cut their costs at a place they love. Some go to Starbucks to meet friends or to grab a quick pick-me-up at lunch. And for many, it’s a daily habit: wake up, grab a coffee, and drive to work. The company has carefully crafted a strategy of home, work, and Starbucks. Their goal is to have you spending significant amount of time at their retail stores.
Personally, I have a couple cups of coffee each day. Sometimes they’re from Starbucks, and sometimes they’re not. As a frugal person, it’s hard to see any purchased coffee as a thrifty choice. It’s not. To brew a pot of coffee might cost $.40-.50. If you get a tall coffee at Starbucks, that’ll set you back about $1.89 (and that’s just for a plain coffee). Of course, the frugal choice is staying home, but sometimes I like going out and grabbing one on the go. Sometimes there’s just something wonderful about working in a coffee house.
Regardless, my ultimate goal is to save every dollar and dime I can no matter the place. People tend to criticize Starbucks for being “too expensive,” but a cup of coffee is pretty reasonably priced. If I go anywhere else in town, I’ll be looking at about $2 or more for the same size.
It’s been two years since I last wrote about saving money at Starbucks. Much has changed with the company and my wallet since then. Nowadays, I can save 20% or more at Starbucks — every day. Here’s how you can, too.
1. Start with a cash back card (6% savings)
To achieve this level of savings, you must start with a cash back credit card. Personally, I use the Blue Cash Preferred card from American Express. This card is designed to give you 6% at grocery stores, 3% for gas, and 1% for everything else. I only use the card for grocery and gas purchases (bonus tip: the Amex card even works at Aldi to save me an additional 6% on groceries).
Now, you might be wondering how Starbucks could ever be considered a grocery store. How could someone actually net 6%? The answer takes a couple more steps to understand. Stick with me.
2. Buy an eBay gift card to purchase a Starbucks gift card (10% savings)
At a local grocery store, look at their gift cards aisle. If they’re like mine, you’ll find tons of options from Amazon, Chilis, and even Starbucks. But you don’t want to buy a Starbucks gift card yet; albeit, that’d net you a cool 6% rapidly. Instead, we need to buy an eBay gift card.
After buying an eBay card, search on their website for a Starbucks gift card. You’ll find tons of offerings. A good rule of thumb is 10% — that’s the expected discount off the face value of the card. This process takes time. To purchase an eBay gift card, then a Starbucks gift card, and wait for it to arrive at your home might take a couple weeks. For me, it’s worth it because I know I’ll eventually go to Starbucks again; when I do, I want to save.
3. Register for Star Rewards (5% savings)
In the last couple years since I wrote about saving at Starbucks, they changed Star Rewards. The process involved some chicanery, but the bottomline is they devalued their entire program. For every dollar spent, people earn two points. Once earned, you can buy almost anything with a reward (how about a venti fancy-frap or calorie-packed pastry?).
Based on my coffee calculations, it now takes 35 cups to get a reward. Ouch! This miniscule savings does help, though. By registering the card with an established reward account, you’ll save about 5%, conservatively.
4. Bring your own tumbler (5.3% savings)
I bring a reusable tumbler before I ever scan my rewards card. Thankfully, Starbucks provides a hearty 10-cent discount each time.
Want to look like you just got a Starbucks and be frugal, too? Starbucks sells a reusable tumbler for $2 (and I believe it’ll count for Star Rewards as a purchase).
Order a tall coffee for $1.89, and then it becomes $1.79. Ten cents might be laughable, but over time these costs add up. By using a tumbler each time for coffee, you’ll be saving about 5.3% more. If you forget your tumbler, order a short coffee (8 oz) to save about $0.10 off a tall.
5. Take advantage of free refills (50% savings)
Most coffee places don’t offer free refills. For registered Star Rewards members, cups of coffee can be refilled for free. Now, a $1.79 cup of coffee can become $0.90. Or, $0.60 if you really are looking to get your coffee buzz on!
Even without the refills, Starbucks becomes a solid option for those looking to have a cup of coffee while out on the town, crossing the country, or just looking to get a little work done. By combining these strategies, I save over 20% every day at Starbucks.
Do you go to Starbucks? What tricks do you have to save at coffee shops?
Kate @ Cashville Skyline says
I’ve got a subscription for two fresh bags of beans every month from Blue Bottle. I split the cost with my boyfriend and it costs us ~$1 per day. We each drink 1-2 cups per day. A cup of the same quality would probably cost $3-4 at a local coffee shop.
Syed says
I use the blue cash preferred whenever I need to buy gift cards. It turns out to be about a 4.6% cash back card when you factor in the annual fee, but still better than almost every grocery reward card. In the good old days I used to use that card to buy $500 visa gift cards and get the gas points as well. Those easy money days are gone though.
Cool trick with buying the gift card off eBay. I don’t drink Starbucks enough to justify that but I’ll keep that in mind next time I need to make a big purchase from Home Depot or something.
Annie says
Great post.
InsiderAccountant says
I don’t drink coffee at all – I’ve never understood the obsession with it.
Presumably the best way to save on coffee at starbucks is to beat the addiction to coffee and simply not go there at all. I still enjoy plenty of other vices, but coffee is one that I can easily do without!
swissrose says
I don’t go there. I don’t drink coffee or any of its variants. Tea at home or at friends’ homes is much nicer!
But seriously, how did this coffee addiction all over the western world begin?! And worse, the compulsion to take your coffee with you everywhere?! Sadly, it has infiltrated Europe, too, along with the ubiquitous water bottle. What kind of people/adults constantly need to either suckle a bottle or on a coffee sippy cup like infants? We all survived before these fads quite simply on tap water when we were thirsty or at meals or in teas and infusions.
As a child in Europe in the 70s, I don’t remember there even being water in bottles (possibly with the exception of Perrier and San Pellegrino in France and Italy, as the tap water there has never been palatable – but it was drunk in cafés, not on the street). Coffee was something adults occasionally drank after dinner with friends and even that was a trend from the 60s, again imitating French/Italian habits. Nobody would dream of drinking anything (or eating) on the street, in trains, cars, at work or wherever!
Like Insider Accountant, I don’t understand the obsession at all. Especially in a country full of other “interesting” ideas about what is healthy or not! ??
zoevanderbyl says
I don’t have a Star Rewards membership with Starbucks, but after reading and knowing some of the perks, I think it would be a great investment!
One of my personal tricks is going with people who work at Starbucks (or go into a shop where I know they people working) and they have their own discounts. Also, my sister works at a Starbucks plant in my town and she gets bags and bags of free coffee, so we get to try all the different flavors.
LeEllen says
Don’t be so harsh. I don’t like the price but since I cannot have cow’s milk it is a real treat to go to Starbucks or any coffee house that carries soymilk. Coconut milk is a Close second. I also cannot do almond milk. Don’t care for black coffee. Not able to do most desserts so a dessert coffee is a REAL treat! AN iced mocha latte or frappiccino is as close to a milkshake as I’ve been in 30+ years. A little cup of heaven. Hope this helps you understand the obsession a few of us have. I can’t always have OJ & don’t do pop so there’s not a lot out there. Plus my good I eat is limited so this is a real treat. I am so thankful they are around & still carry SOYmilk. Sometimes you just need to realize when you think something is stupid that there just may be something you just don’t understand yet. I usually leave my coffee in my car but when I chose not to I’d hope you’d understand a lot of my allergy good is expensive so plz be understanding if I choose to enjoy it while it’s warm. Perhaps it is the one thing making my day. Also Cultures change. There’s a lot more serious things to spend energy on than
Whether Americans take their coffee with them. Thanks for listening.