THE SAVINGS GAME
Confessions of
a gift card Scrooge
There are better options for holiday giving
Chances are you will give or receive a gift card this holiday season. The total volume of gift cards is projected to be $149 billion last year. That’s a 54 percent increase from 2007.
In other words, gift cards are dominating all other form of gift purchase. My husband and I have already gotten several this year, and we’ve been asked to chip in on one for my child’s teacher.
However, I really wish we could opt out. Here’s why I am a gift card Scrooge, for both givers and receivers.
This takes time, especially if you are a person who likes to research their purchases to make sure the money is spent well. You could resell the gift card on an online marketplace, but that takes time too. Small wonder that $1 billion in gift cards expires every year.
Cash is equally easy to give as a gift card, but it places absolutely no obligations on the receiver, other than being properly grateful. Of course, it’s worth noting that Visa, MasterCard and American Express gift cards are one of the top categories of gift cards, and those are pretty similar to cash. Maybe they should be an exception to my blanket ban on gift cards.
A handmade gift like bath salts or cookies, a thoughtfully chosen discounted or even vintage gift, or one of your own cherished possessions that you are passing along to a family member, can cost far less than an amount that looks stingy when placed on a gift card.
You may think iTunes cards are a safe choice for a teen, but I’ve got news for you: While iTunes beats out all other companies for online retail searches for gift cards, sales of online MP3 downloads are in a long decline. Kids are more likely listening to new music on a subscription service like Spotify or YouTube.
My advice: Stick with cash and a nice card. Or, hey, maybe take the plunge and get to know your family member and find out what they might want. Maybe hit up one of their close family members for some suggestions.
Consider a donation in the gift recipient’s name. Some charities won’t reveal the amount, which is good if you don’t have a big budget. Others, such as the Heifer Project and the International Rescue Committee, have gift catalogs that show where your money is going, which can be a nice touch. If you know a cause the recipient supports, go with that. If you don’t know them as well, pick something uncontroversial like a local food pantry.