“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
-
Stock Market Today: Nasdaq Shines In Volatile SessionIt was another up-and-down day for stocks as market participants weighed encouraging inflation data against the latest tariff headlines.
-
Don’t Make These Five Mistakes on Your Tax ReturnTax Filing The IRS warns taxpayers to watch out for these common errors as they prepare to file.
-
These Four Books Explore How to Leverage Our Outrage PositivelyThe authors offer some powerful tools to help us find solutions to discord rather than remaining silent or blowing up in anger.
-
Financial Pitfalls to Avoid in Your 30s, 40s and 50sAs you pass through each decade of working life and build wealth for retirement, watch out for the financial traps that can hinder your progress.
-
Trump's Tariffs Could Spike Gas Prices: Here’s How to SavePresident Donald Trump's tariffs against Canada could lead to higher prices at the pump. Here are ways to save.
-
Borrowing Against Your Life Insurance: How It Works and What to ConsiderUnlock quick access to cash by borrowing against your life insurance policy — without credit checks or strict repayment terms.
-
Four Action Items for Federal Employees With $2M+ SavedIf you can't stand the chaos, maybe you can walk off into the sunset of retirement. Here are some thoughts on how to figure out if that would work for you.
-
How to Help Accelerate Support for Women's EqualityInternational Women's Day was earlier this month, and the theme this year is Accelerate Action. Here's how we can all pitch in to help drive gender parity.
-
How to Help Shield Your Retirement From InflationPicking the right investments at the right time can help ensure inflation won't flatten your retirement savings. Here are some tips.
-
How Trump’s Tariffs Could Impact Your Grocery BillTariffs at the checkout: Preparing for higher grocery bills and how to manage them.
