Every person has their own opinion about gift cards. But to me, I love them! The way I see them is that they are cash gifts that I can sock away in savings. Of course, this only applies to gift cards that I will actually use. Receiving a gift card to a store I don’t shop in is pointless, obviously. But more times than not, the gift cards I receive are either American Express visa Gift Cards, which can be used just like a credit card, or gift cards to Starbucks, a place I visit daily.
How does that work, putting the value of a gift card into my savings account? Let me explain; as soon as I receive, say, a Starbucks gift card, I decide if it’s an amount that I can transfer from my regular checking into savings. If it’s not, I place that Starbucks gift card some place safe and will use it only when I can transfer the value of the gift card from my checking into my savings. When I have the cash to transfer, I then use the gift card that week toward my drinks since its a regular expense for me. I’m basically supplementing my spending habits with the gift card.
Today, I went shopping for Christmas dinner. Instead of using my debit card to pay for the entire grocery bill, I used a $50 AMEX gift card. This is an expense that would have normally come out of my checking account. When I got home, I then transferred that $50 from my checking account into my savings. Gift cards help me (or force me!) to save money.
I relate these gift cards to when I was a kid and received cash as a gift. Many times, a majority of the cash would be deposited into a savings account. The remainder I would spend on a small item that I really wanted. Since I’ve become an adult, I rarely receive cash gifts and instead receive gift cards. And, in California at least, gift cards don’t expire. Some do charge a small fee if they go unused, but it is nominal and I usually use the gift card before this happens.
A few times that I have received gift cards that I don’t use, I’ve been able to sell them on eBay.com for slightly less than what they’re worth. Another alternative to unwanted gift cards, giftcardrescue.com. I don’t have any experience with this company, but it’s worth a look if you end up with unwanted gift cards. They pay between 60% and 80% of the value of the card.
Do you like to receive or give gift cards as presents? Do you have any experience with giftcardrescue.com? Do gift cards alter your spending habits?
1 Comment
Gift cards are another farce the retailing world has put over on rubes that fall for them.
What is the purpose of a gift card? Why wouldn’t the giver simply give cash? Think for a moment – if you give a gift card for a specific store, you are dictating where the recipient uses it. What if the recipient doesn’t shop there or doesn’t like the store? Well, be happy to know that your gift is not appreciated and will most likely find its way to being regifted to someone else. Makes you feel real good about all the time you spent picking such a thoughtful gift – huh?
If you get someone a gift card from one of the credit card companies (AMEX, Visa, Mastercard, etc.) that can be used anywhere – once again – why that instead of cash? Some have upfront fees (I’ve seen Visa gift cards that cost the purchaser $4.95 on top of whatever amount thy put on it). Then, as with most gift cards, there are inactivity fees that eventually kick in. Who does all of this benefit? The purchaser? The receiver? Of course not – it only benefits the card issuer.
Think first – just give the cash and know the recipient will spend it on something they truly want or need.