Are Your Gift Cards Going to Waste?
Gift cards are a popular choice for the holidays and for other gift-giving occasions. Many people choose to give a gift card when they aren’t quite sure what their recipient would like and don’t want a gift to go to waste. But many gift cards end up unused. About $2 billion worth of gift cards are unredeemed each year!
Does this mean you should avoid giving out gift cards entirely? Not necessarily. There are some ways to ensure the gift cards you hand out to friends are used and enjoyed, rather than tossed in the “forgotten” pile.
1. Make sure the gift card can be used in your recipient’s area.
If you are gifting a card to someone who lives in a different city, double-check to make sure the business you’re buying for has a location near your recipient’s home. If the nearest location is 50 miles away, your friend may not bother using the gift card.
Another alternative is to buy a gift card for a business that sells online. This way, your recipients can order items and have them shipped, regardless of where they live.
2. Buy based on your recipient’s interests, (not yours).
Another mistake people make when buying gift cards is buying cards for stores they like, rather than those their recipients like. Just because you love a luxury jewelry store doesn’t mean your 16-year-old niece would want to shop there.
Pay attention to where your loved one shops, and buy a gift card for a store you already know they visit. You can even ask them what their favorite stores are — this way, you’ll get it right for sure.
3. Put enough value on the card to be useful.
This is a common mistake with restaurant gift cards: you give the recipients $20/$25 gift cards, but if it will cost them $100 to eat there with a friend, they don’t bother even going. If you’re going to give a gift card for a restaurant or an entertainment experience, make sure its value is high enough to cover the full cost of the activity or at least one meal. If you can only afford to give a $25 gift card, consider giving cash cards instead.
4. Consider cards for things everyone needs.
If you don’t know where recipients like to shop or dine, consider giving them gift cards for necessities, like gas or groceries. It may not be the most exciting gift, but it’s one they’ll appreciate and use!
5. Check for expiration dates.
Some gift cards have expiration dates. Especially if you know your loved one is not a very prompt person, you should avoid giving these as gifts. Not everyone reads the fine print, so they might not remember to use the card before it expires. Read the terms and conditions before you buy a specific gift card.
Gift cards are often given with hopes of pleasure and usefulness. You want to give a gift your recipients will enjoy; not something that will get lost in the back of their wallets. This year, you can do exactly that.
Equal Housing Lender