Is The Gift Card a Good Gift?

December 14, 2007 · Filed Under · 5 Comments 

Starbucks Gift CardI have a little more Christmas shopping to do and I was thinking of buying a few gift cards for family and friends. I have noticed a lot of debate recently with people weighing in with their opinion on whether they feel the gift card is a thoughtful gift or just a sorry excuse for a gift. Here is when I think gift cards make sense:

  • Food and Drink Gift Cards are great. I have a friend who loves Starbucks but complains about the expense. So a Starbucks gift cards would be very appreciated by this person. It provides a special treat without the worry over the expense. I think a gift card is kinda cheesy in the case of the friend who is very athletic so I buy them a $25 Sports Authority gift card. Not very personal, plus you can’t do a whole heck of a lot with $25 at Sports Authority, where that buys 5-6 cups of Java at Starbucks. Other good examples of “treat” gift cards include Jamba Juice and Coldstone Creamery. Especially for teenagers, they love ‘em.  Also, I like the iTunes gift card for music lovers because you can get quite a bit of music for $25!
  • Only give the gift card when it won’t create more spending. I once got a gift card for Brookstone for $25. For those of you who are not familiar with Brookstone, the only thing they have that costs $25 or less is their free catalog and some luggage locks, which I ended up buying and have never used! If you are giving a gift card to a place like Brookstone or Sharper Image, only do it if the amount of the card actually lets the recipient buy something decent without having to fork out their own money. Otherwise you are buying a partial gift for someone and telling them they can buy the rest of it if they want!

Your thoughts?

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Comments

5 Responses to “Is The Gift Card a Good Gift?”

  1. Mrs. Micah on December 14th, 2007 11:32 am

    Food and drink ones are excellent–at least if they cover the price of what you’d be doing there (like a $10 to Applebees might not be as happy because it would violate rule #2).

    Or one to their favorite hobby shop–Joann’s, Michael’s, A.C. Moore, um something non-craft-related that I can’t think of….

    And Rule #2 is really important. Unless it’s a place where I’m already going to spend money (hobby shop), then it’ll just be a nuisance.

    Also, check proximity. Is there a point in giving me a Sears card when the nearest Sears is miles and miles away? If the place offers online ordering, then it’s ok.

  2. Jennifer on December 14th, 2007 12:17 pm

    Costco carries some gift cards for a higher face value than the cost. For instance, you can get 4 Itunes gift cards for $15 each, but you only pay $56 for all four.

    I like receiving gift cards, but I usually don’t buy them for people. I feel pressure to spend more on the card than I would have spent on the gift, since the recipient knows what you spend on the card. I can usually find a really nice gift for less than the dollar amount I’d feel represents a “nice” gift card.

  3. Jenny on December 15th, 2007 8:25 pm

    I give a lot of gift cards. I never buy them for people though. I redeem my mpoints.com points and use my credit card cash back points to get specific gift cards for gifts. I do try to make sure that the gift card I’m giving is something tailored for the person though. If I had no choice but to buy a gift card or buy a present then I would always pick the present since I can get a decent present cheaper than buying a decent gift card.

  4. Linda Bustos on December 16th, 2007 2:06 pm

    You definitely want to stay away from cards with expiration dates or inactivity fees (like bank issued prepaid credit card – type gift cards – Visa’s My Treat is an example).

    Then you want to make sure you load the card with enough $$ to cover a typical gift/meal at the store/restaurant. Nothing worse than shelling out your own money for a gift or dinner!

  5. Dividends4Life on December 19th, 2007 11:03 am

    You make some good observations. When I receive a gift card, I view it like cash – unless it is at some odd place that I would never shop. Then it becomes wasted.

    Best Wishes,
    D4L

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