Gift cards seem great. They are convenient because they are easy to wrap and seem to be the perfect gift for the person who has everything. Rather than imposing your own gift choice, why not allow your friend to shop for themselves?

So what are the problems with gift cards?

You are still imposing a choice on your friend if you give a store or restaurant gift card. You may be giving a card to a place where the recipient never shops.

And if you are giving small face value cards, they may actually force your friend to spend a lot more money to use them! Studies suggest that most people who use gift cards actually spend more than the value of them! And in the old days, stores would actually give back change in the form of cash. But now the value is left on the card. So even if your friend uses $21 on a $25 restuarant card, they will have to return to that eatery and spend more in order to use up the remaining $4. No wonder stores and restaurants love gift cards!

Lots of people forget to use them. How many times have you cleaned out a drawer and found 5 year old gift cards that are no longer valid. Many cards impose inactivity fees after a short time, and then expire the cards after more time has passed. Studies suggest that many people do not get the full value of their gift.

But Gift Cards are Such Convenient Gifts!

I agree that these little pieces of plastic can be very convenient gifts. Try to use some thought when you purchase them though. A gift card to a restaurant where you know your friend eats, or a store where everybody shops, can be a thoughtful gift.

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It happens almost every holiday season. Gift cards seem like such a great idea because they allow the person who got the card to go shopping. The only problem that pops up is when the card is only for a store that you never go to. A $50 Godiva chocolate gift card may sound perfect, but it will not work for somebody who just started their New Year’s diet. If you are in a situation like that, you would probably rather have a new pair of walking shoes or money for new Gclothes that are a size smaller!

Some great uses of unwanted gift cards:

• Sell Your Gift Card. You will need to sell it for less than the face value, but you can get some cash for it. Look at online auction websites, and you will see that they are full of gift card sales. Or, simpler yet, put up a notice at work in a approved place.
• Give Your Gift Card Away. If you got a $50 gift card to a store that is just not convenient, you can use it as a donation to your favorite charity.
• Buy Stuff For Other Gifts. You can use that unwanted card for a big box of chocolate and then promptly pass it on to a non-dieting friend for Valentine’s Day.
• Buy Sfuff to Donate. The chocolate example may not work here. But let’s say your teenage daughter gets a gift card to a discount store, and she only wants designer jeans. You could use this one to buy things to donate. Maybe, make a deal that you will pay her for half the value of the card, and then you can use the items as a charitable donation.

The donation idea can have some positive tax implications too. So make gift cards, even unwanted ones, the gift that just keeps on giving!

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