Did you get any gift cards this year?

I have a question.  How do you spend your gift cards?  Obviously, it will depend on which store the card is from, and whether or not it is a store at which you normally shop.  I got a couple of gift cards this year, down a bit from last year.  Gift cards have become an extremely popular gift.  The Federal Trade Commission estimated that consumers will spend $25 billion in gift cards this holiday season versus $18 billion last year.  Does your local grocery store have gift cards for all the popular retailers?  Mine does.  You can go to Von's to stock up on milk, eggs, frozen peas, a $50 Pottery Barn gift card, and a two day Disney Park Hopper pass.  Dinner, check.  Christmas shopping, check.  All in one trip.

So, how do you spend your gift cards?  The way I see it, most people fall into one of a few categories.

1. You rush out on December 26 and find something to buy with that gift card burning a hole in your pocket.
2. You keep the gift card in your wallet or purse.  You don't make a special trip, but the next time you are in that store you are sure to find something you like.
3. You have the gift card on hand, but everytime you are in the mall, you stop by that store to see if there is anything you like.  You are selective and discerning.  Just because you have a gift card doesn't mean that you are going to spend it on something you wouldn't be willing to spend "real money" on.
4. Sale rack only.  Let's say you get a $50 gift card to Banana Republic.  Are you going to buy a $75 cashmere sweater because it "only cost you" twenty five dollars?  Not the Sale Rack shopper!
5. Save 'em up.  This doesn't seem to apply to clothing stores, but electronics or home furnishings.  Are you coveting a plasma TV or a faux suede couch?  Get the word out and start saving those gift cards.

I'm somewhere between #3 and #4.  I recieved a $25 Banana Republic gift card last year, and probably went into the store more than a dozen times, gift card in hand, and didn't buy anything.  I would head over to the sale rack, looking for something nice in my normal budget range.  Finally, I needed a nice shirt for an event we were going to, and I ended up buying a shirt, not on sale, for fifty bucks.  More than I would normally spend, but unlike the "Sale Rack Only" shopper in #4, I justified it by using my gift card.

But at least I used it.  More than I can say for a couple of other gift cards that I received last year.  According to a recent article on Yahoo, close to $5 billion dollars of gift cards will go unused!  Five Billion.  With a "B"!  No wonder the retailers love to sell gift cards.  We're giving them money and not going back for merchandise.

Comments

[efipo.com]

I love gift cards because they are no longer considered thoughtless gifts. I also like to invest in business that sell gift cards because it usually increases their profits by a large amount.

[D]

I am not in love with gift cards. I think it is the easy way out - making me grateful to give and just ok to receive.

Anyhoo - I received only 2 gift cards and they were perfect - A Visa Gift Card. Good Anywhere. And a Starbucks Card from my employees.

I will use the Visa on business items I need and would be buying anyway now - the visa was a business gift. I don't like money sitting on the card makes me crazy. Yet, wasting the money on a quick decision would make me even crazier. So, I'll go practical and then take the cash from the company, spend when I think of something.

The Starbucks one will most likely last longer - even I can't drink that much coffee. So Starbucks wins with the profits on the cash.

We purchased some gift cards for the kids, but all will be spent in a timely manner - they got gas cards (helping with the necessity), starbucks cards (enough for 2 visits), movie tickets, subway gift cards -- I guess all are consumables and were stocking stuffers. None will flow long enough to make the companies any real cash.

[Anne]

Well, my parents gave me a $20 Wal-mart gift card. Normally I never set foot in Wal-mart, but went the next day because of the gift card and got some Christmas lights, etc., which were 50% off. Hated being in there so much that I gave the card with the remaining balance to my husband. He loves Wal-Mart and goes in 4-5 times a week, so that was a win-win!

[The Sarcasticynic]

Five billion dollars worth of unused gift cards. Not much different from $5B worth of unused crap from Pier One sitting in people's closets after Christmas. At least they take up less space.

[bluntmoney]

I'm a combination of #1 and #2. If I get gift cards to places I don't normally go, then I usually run out on December 26th and poke around. (Because I like shopping, there are usually sales then, and I figure why not check it out.) If I get gift cards to places that I DO normally go, I just put them in my planner and use them the next time I'm in.

[Thomas]

Unfortunately I did not receive any gift cards this year, but in previous years I always looked forward to getting a couple. This would allow for me to take advantage of a sale in the future, also allows me to pick out something that I like rather then getting a gift that someone thinks that I need. I would say that I am also a combination of #3 and #4.

[Jen]

I hate spending gift cards. I know that I'm difficult to buy for and I refuse to give lists. I actually have a harder time spending them than I do my own money. I don't care about wasting my $25 on something frivolous, but spending someone else's money adds the pressure to make it "meaningful" which makes shopping feel like work. It takes me an average of six months to spend a gift card (I've measured it!).

[MBT Shoes]

It's so nice to have you do all of the research for us. It makes our decision making so much easier!! Thanks.