“If in doubt, get a gift card.” Not my advice, but the words of my 12-year-old when we were discussing what we should get his friend for Christmas.
He’s right, to an extent. Once kids get too old and too cool for toys, you’re entering into a bit of a no-man’s land gift wise (unless they’re into the ultimate failsafe, Lego). So it’s arguably safer to give them the means to choose their own present. We’ll get a card from a trusted online retailer, and I’m pretty sure it’ll go down well with the friend in question.
Aside from kids and teens, though, gift cards aren’t always well received. Some people consider them unimaginative or even thoughtless — the equivalent of stuffing some cash in an envelope. And it’s true that I don’t generally give gift cards for Christmas.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Here’s the reason though — and it’s nothing to do with money etiquette or being a Scrooge. It’s just that gift cards can turn out to be a massive headache, and that’s not something I want to give to anyone.
Where I live, in the UK, the high street — what we call the main retail area in any town or city — has been in decline for years, with many well-respected stores and restaurant chains suddenly going bust, even before the pandemic. That’s turned far too many gift cards into redundant pieces of plastic.
If you’re dogged about it, you can try to get the money on the card back from what’s left of the business, or its administrators, but your chances are slim. If the gift was bought with a credit or debit card, the cardholder may be able to get their card company to reverse the charge, as you can in the U.S., but that also takes time and effort.
It’s a similarly challenging time for businesses in America. Consumer habits are changing, and as more people shop online, order in and shun sit-down restaurants, even big names are feeling the heat. Consider TGI Fridays, which has filed for bankruptcy and is liable for around $50 million in unused gift cards and certificates.
Choose a gift card wisely
So, what should you do if you’d still like to give a gift card this Christmas? To guarantee your money won’t go to waste, it’s safest to buy cards from the biggest names with the best reputations.
You’ll know which ones the recipient likes, but it’s an especially good bet to pick a department store to widen their choices when they eventually go shopping. According to YouGov US, the most popular department store for baby boomers and millennials is Costco, while Gen Xers prefer Kohl’s. Best Buy is also a good option as it has a wide range of products. Or, use our guide to the best gift cards to find one that’ll be appreciated.
A word, too, on expiry dates. While gift cards here in the UK can have pretty short lifespans and may expire in two years, that’s less of a problem in the U.S., which has better consumer protection. While state laws vary, under federal law, money on a gift card can’t expire for at least five years from the date the card was purchased, or from the last date any additional money was loaded onto the card. (Those TGI Friday gift cards? They never expire.) Remind the recipient to keep the card in their wallet so it’s less likely to be forgotten, but give them the original receipt in case the card is lost or stolen.
And lastly, without getting too Downton Abbey-etiquette about it, if you’re reluctant to give a gift card at Christmas because it seems a little, well, “inelegant,” you can make it less transactional by wrapping it up with the receiver’s favorite chocolates, a small jokey gift or just a handwritten note — anything to let the person know you’ve thought about them. After all, isn’t that the real point of holiday gift giving?
Related content
-
Is Retiring in 2025 Right for You?If any of these signs ring true, retiring in 2025 may be in your cards.
-
California's Home Insurance Crisis: Rising Risks, Soaring Costs and Limited OptionsAs wildfires intensify across California, insurers retreat, leaving homeowners with fewer coverage choices and higher costs. Learn what’s next for the California insurance market.
-
A Strategic Way to Address the Tax-Deferred DisconnectWhat you don't know could cost you a fortune. Here's how to make the most of a tax-deferred retirement account and possibly save your heirs a bunch on taxes.
-
CPI Report Keeps the Fed on Track: What the Experts Are Saying About InflationCPI Disinflation in key areas of consumer prices should help the Federal Reserve stick to its policy path of gradual cuts to interest rates.
-
To Insure or Not to Insure: Is Life Insurance Necessary?Even if you're young and single with no dependents, you may need some life insurance. Here's how to figure out what and how much you may need.
-
How to Organize Your Financial Life (and Paperwork)To simplify the future for yourself and your heirs, put a financial contingency plan in place. The peace of mind you'll get is well worth the effort.
-
Saving for Your Emergency Fund: As Easy as 1-3-6An emergency fund that can cover six months' worth of expenses is far easier to build if you focus on smaller goals at first.
-
What Is a Certified Pre-Owned Car? Everything You Need to KnowCertified pre-owned cars – thorough inspections, extended warranties and peace of mind. Learn what to look for.
-
Blowout December Jobs Report Puts Rate Cuts on Ice: What the Experts Are SayingJobs Report The strongest surge in hiring since March keeps the Fed on hold for now.
-
The Wrong Money Question to Ask After Trump's ElectionIf you're wondering what moves to make with a new president moving into the White House, you're being dangerously shortsighted. Here's what to do instead.
