CLEVELAND, Ohio — It’s October, and both shoppers and stores are already looking to kick off the holiday shopping season. Before you do that, I have one suggestion.
Stop buying people gift cards.
This is simple but hard to follow advice. We all have people in our life, whether it’s an acquaintance we don’t know well or a Gen Alpha tween we can’t relate to, who are hard to shop for. You don’t know what Bob wants. So, you buy him a gift card.
It might work if it’s for a retailer like Amazon that has everything item imaginable: they’ll probably use that. Or if the gift giver really knows you well — those who know me well know I’ll spend every cent on a Chipotle gift card.
But data from Bankrate, a personal finance website, tells us the truth. Many of us aren’t using the gift cards we receive.
According to its recent survey:
• 2-in-5 Americans have at least one unused gift (6% didn’t know if they did or didn’t)
• These people, on average, have $244 of unused gift money (up from $116 in 2021)
• 1-in-3 Americans have lost money either because their gift card expires, they lost it, or the retailer went out of business
• Despite this, 4-in-5 people say they’ve given a gift card to someone else
I fall into all of these categories. I’ve lost gift cards or had to go out of my way to use them. And despite my disdain for them as a concept, I’ve bought them for other people.
My goal this holiday season is to buy no gift cards, and my hope is to only receive ones that I’ll actually use.
What should you do instead?
There are some scenarios where you might want to get someone a gift card.
If you’re buying someone a service, like a pedicure, buying a gift card means you don’t have to show up to pay on the day they visit the salon.
If it’s a digital product, like a videogame they’re going to download, a gift card is probably the easiest way to deliver that kind of gift.
When it comes to Costco, buying a gift card lets someone get in without buying a membership.
What if I want to get a co-worker or other acquaintance a gift, and don’t know what they want? You’re under no obligation to buy them a gift.
At work, I advocate for a white elephant gift exchange. Everyone only has to buy one gift, and people can choose what they want as the game goes on.
What if you’re going to a wedding or party? A check is safer, because if they lose it, you can write a new one. Or you can send money via Venmo or Zelle.
What if someone specifically asks you for a gift card for a specific retailer? I begrudgingly, say that is OK. Maybe they have a specific product in mind.
Also, the more money you make, the more likely you are to have unused gift cards, according to Bankrate’s survey. If you’re trying to help someone out, consider cards they can use for groceries or fuel.
The odd situation is kids and teens. You’re close with them, unlike random acquaintances, but you don’t know what is “cool” or “sigma” at the moment.
I was a kid once and giving them gift cards doesn’t work. They will lose them, or you will inevitably pick the wrong one.
Here’s what I do.
When my younger nieces or nephews need presents, I send their parents a text with Amazon links and ask if they’d like it. If it’s my older nieces, I just ask them directly.
After they jokingly ask for gifts that their parents would shoot down, like a dog or getting their ears pierced, I usually get a good suggestion.
My oldest niece needed a device that would let her old car radio connect to Bluetooth. She uses it every day, and I never would have guessed.
My second-oldest niece “needed” a big bottle Sol de Janeiro #62. Did I know what that was? Nope. But buying her a gift card would have just ended up with her getting the same gift, except with more driving.
If the recipient doesn’t tell you what they want, try to buy them something they wouldn’t buy themselves. There’s no shame in trying to pick a gift.
I’d rather get someone a thoughtful bad gift than a gift card they won’t use.
And there’s no shame in shipping a gift directly to their house and texting “Your present is on the doorstep, don’t let it get rained on.”
Tips if you’ve received a gift card
We will all inevitably get a gift card, except maybe me after this column is published. If you do, here’s a few tips.
• Money on a gift card cannot expire for at least five years from the date the card was purchased, according to the FTC. If it expires earlier, the money can be transferred to a replacement card at no cost.
• Inactivity fees can be charged only after a card hasn’t been used for at least one year, the FTC said.
• As always, watch for scams. Don’t buy gift cards from random website or random people.
• If you buy at the store, check and make sure the gift card or the packaging weren’t tampered with.
• If you have a gift card you won’t use, Bankrate says you can usually trade them in or sell them for 70% to 80% of the value on platforms like CardCash or Raise.
I imagine that this column may make some people unhappy. Feel free to send complaints. I’d rather receive angry emails than gift cards.
Saving You Money is cleveland.com and The Plain Dealer’s column about saving money. We want to know how we can help you save money. Send your questions and comments to [email protected].
Read past columns at cleveland.com/topic/saving-you-money/.
