Gift Cards are the Worst Possible Present to Buy Someone This Christmas
November 27, 2007 By Matthew Paulson
Here’s an idea. Let’s trade perfectly good money, ad exchange it for something that serves the same purpose but has an expiration date, loses value over time, and can only be used at one store! That’s exactly what gift cards are, yet people continue to give them as gifts for Christmas year after year after year! If you couldn’t think of a present to buy for someone this Christmas, just give them cash! Gift cards are the worst possible present you could give someone as a gift!
The reason most people don’t give other people cash and rather give them gift cards is because they want the person receiving the gift card to use the money on themselves as something special, and not just let those funds disappear into their regular spending money. If you want to give them money to explicitly spend on themselves for fun, then do it, but don’t do it in the form of a gift card. Get creative about it. Attach a letter telling them why gift cards are terrible, terrible things and tell them to spend the money on themselves and request a report on how much fun they had spending it. It might not be the best gift idea in the world, but it sure is better handing out a gift card!
When you buy someone a gift card, you are sending them a message that you know how to manage their money better than they are, and should be able to decide which store they spend the money you give them at. It might surprise you, but not every goes to the same restaurants and retailers that you do. In fact, gift cards are never even used. That doesn’t even count the gift cards that are used but only half the balance ever gets eaten up and then it just sits in a drawer somewhere while the balance slowly declines over-time thanks to inactivity fees which are completely junk fees. Chances are they’ll be hit with all sorts of other fees which are designed to suck money off the balance of the card.
There’s only one time when it makes sense to use a gift card, and that’s when you’re given a discount on it. Since a lot of people realized that gift cards are total junk, many restaurants have been offering gift-cards at a discounted rate. You might be able to get a $25 gift-card for just $20.00. In this case it makes sense to get a gift-card if you know that you’re going to make use of it. It’s essentially free money, but that’s the only time it makes sense to ever purchase a gift-card, otherwise you’re just putting un-needed restrictions on your money!
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November 27th, 2007 at 9:06 am
[...] post by admin and software by Elliott [...]
November 27th, 2007 at 9:07 am
[...] Original post by admin [...]
November 27th, 2007 at 9:47 am
[...] Original post by American Consumer News [...]
November 28th, 2007 at 2:41 am
Doesn’t anyone proofread anymore?
November 28th, 2007 at 4:29 am
I don’t think Gift Cards are a bad idea at all. Yes I do buy them every year as presents. I always think it is better to let the person choose the present they would like.
Better than upsetting them when you get them something they detest and do not want to hurt your feeling by telling you that they don’t like your present.
November 28th, 2007 at 8:32 am
Hater. I can say the same about let’s say…a shirt. Let’s trade perfectly good money, and exchange it for something that doesn’t fit, loses value over time, and can only be exchanged at one store!
No, really though, they’re not that bad. They’re pretty much for people who can’t come up with a better idea for a gift. Here’s an idea, buy them a book. It makes the whole world happier.
November 28th, 2007 at 10:49 am
Why do I give gift cards? There are many possible reasons.
1. I don’t know the person well enough to know what they would like.
2. For restaurants, I know their favorites, so I can give them essentially a “free meal” at that restaurant.
3. Retail store gift cards are beneficial as they can use it for necessities (I’ve used gift cards for this many times and have been thankful for them). Nothing like having someone else cough up for that pack of TP you need.
4. They were requested (multiple friends have done this for their weddings).
Also, as a side note, some companies may dump junk fees on cards, but not everyone does. We had a Walmart gift card from our wedding (over 5 years ago) and it still had its full balance available. Also, this article assumes the non-existence of Visa and Mastercard gift cards which can be used anywhere credit cards are accepted (can we say everywhere?). These are superior to store-bound gift cards.
November 28th, 2007 at 12:29 pm
Gift cards are a middle ground. True, opening a gift card isn’t as great as, say, tearing open a present that makes you weep with joy. But they can be thoughtful, as long as:
1. They’re for a store or restaurant that the person likes
2. They’re worth enough that the person can buy something decent without having to shell out their own money to make up the difference
3. They don’t come with fees, penalties, and terms & conditions that fill the entire backside of the card.
4. You’re not giving it to your wife. Wives translate the phrase “Gift Card” into “You Don’t Love Me”. Gift cards are only for friends and coworkers.
And let’s face it, they’re much better than nothing at all.
November 28th, 2007 at 3:31 pm
Are you kidding? There are few things that I love more than the pile of gc’s to the bookstore on Christmas morning! I don’t expect my husband/mom/friends to know what book to get me, but they should be able to remember that I love to read! Yes, yes - fees and blah, blah, blah. With all the options out there this sounds like a specious argument to me. Last thing I want is for someone to feel bad for giving me what I wanted….
November 28th, 2007 at 10:17 pm
Because you get a deal with gift cards! - I get a free 5 dollar voucher when I buy 25 dollars a qdoba. Also I work for Giant Eagle and we give a double gas voucher when purchasing gift cards. Win-win. As long as they are used - the retailer hopes you lose them.
December 1st, 2007 at 2:19 pm
I’m also anti-gift card. As great as the giver’s intentions are, you still end up with something useless sometimes, because they give you a gift card to a place you don’t shop at anymore. I actually wrote an entire post on 9 great gift ideas for a broke college student. My list may surprise you.
December 3rd, 2007 at 6:46 am
[...] American Consumer News presents Gift Cards are the Worst Possible Present to Buy Someone This Christmas. [...]
December 28th, 2007 at 9:54 pm
Gift cards are of the suck! I got one for wallyworld this christmas… It does not funtion at ANY store I take it to even thought the site says there is 50 bucks on it and it is activated. They said the ‘glitch is fixed. Apparently not. Thanks for worthless plastic. Give me CASH so this kind of thing doesn’t happen to me. Bought all things with my own cash as a result. Bummer christmas. I HATE these crappy pieces of plastic filth!