Story Telling

It used to be that giving a gift certificate was seen as a thoughtless or lazy gift. Sure they have their place, but there’s always been a stigma attached to them.

I’m not sure when that changed, but these days Gift Cards… specifically the ones with the magnetic stripe on the back… are big business. They are everywhere now, and selling in record numbers.

But are they any less thoughtless and lazy?

Now… bear in mind, that I’m picky enough that I’m always afraid to let other people shop for me. I’m not fashionista, but I know what I like, and other people don’t seem to. So I would much rather receive a gift card than (for instance) an ugly sweater or something. But consider these facts:

• The cards themselves are not free. To get a $10 card may cost as much as $12.
• There are sometimes hidden fees.
• If you don’t use the balance in time, the card may expire and you lose the entire value!
• Unlike tradition gift certificates, retailers don’t make the cash value of the card available. If you don’t spend the whole value of the card you lose it.
• … and of course if you spend over the value of the card you are giving the retailer more money (which is the whole idea).

It’s been estimated that last year there was $8 billion left unused on gift cards in the US. This includes cards that were lost or simply unused as well as cards that expired with a small balance remaining after initial use.

Bottom line: its much better and cheaper to just give cash. If you want to make it thoughtful and personal include a hand-written note.