Christmas shopping is fun but it can often be a frustrating and stressful experience, particularly if you are not being able to decide what gifts to give your family and friends or are simply having a tight budget.
Gift cards are again one of the most popular gifts this season. Consumers are set to spend huge amounts of money this holiday season on gift cards.The total gift card business is expected to be about $80 billion this year. Of this the coming season is estimated to be worth about $26.3 billion as against $24.8 billion last year, an increase of about 6%. The average consumer will spend about $122.5 on gift cards this year as against $116.5 last year.
Gift cards not only help you save time and avoid the physical strain of shopping, but are also ideal if you are not sure what the other person would like to get for Christmas. Gift certificates ensure that your loved one ends up with a gift that he likes and one which he will use. Moreover you can stick to a budget. A gift certificate can be purchased for for almost any dollar amount. Some stores allow you to choose the dollar amount while others have preset gift certificate amounts.
The flexibility that these certificates give the recipient is tremendous. He can not only wait to pick up a bargain but can also combine several certificates to buy something expensive, which he or she may not normally get as a gift. No wonder these cards are becoming increasingly popular, especially among the younger generation which is more concerned about freedom of choice.
Critics argue that gift cards look impersonal and are not somehow in keeping with the Christmas spirit that you love and care for someone. There is a simple solution. Give gift cards with some effort. Instead of giving a gift card to a store that sells everything, try to make it personal. If your friend loves reading gift him a card of a bookstore, or a sporting goods store if he is the outdoor type. There's a very wide range of cards available these days covering almost everything you can think of. If you have to gift a card to a store that sells everything it is good to send a note suggesting to the recipient what to do with it, like ' didn't know which toy you wanted this year, so pick your own.' You could also make them part of a floral arrangement or some such thing or gift a set of different cards. It is a sensible idea to send the receipt along with it. It may be needed to replace a stolen or lost card and also gives information about its terms and conditions.
Often gift cards get tucked away at the bottom of a drawer with the idea to be used later at leisure. Many of them are then simply forgotten. About $8 billion worth of gift cards were unused last year because they were not used, lost or expired. Consumer Reports says according to a survey carried out by it 27% of those surveyed had not used their 2006 Holiday Gift cards so far. Out of these 51% had two or more unused cards. This may not be a clever thing to do as some cards have a 'dormancy charge' on them which makes them worth less month after month. Some also have an expiry date after which they become worthless. You would do well to read the rules on your card and use it as soon as you can. Enjoy it, don't leave it around the house. Retailers make extra profits from 'breakage,' the unspent balance on gift cards, which may be then tucked away in your drawer or your wallet and forgotten. Many of these are unfair practices and consumer advocacy groups are up in arms against unfair expiration dates and dormancy fees. Some cards, usually those which you buy from a bank, also have an upfront fees for buyers, which reduces the value of your gift. Fortunately it is expected that such charges will soon be a thing of the past.
In some states, unclaimed property rules called escheat laws give state governments a legal claim to the unspent money. Retailers are therefore moving their operations to states like Ohio and Washington where escheat laws are more favorable.
Often cards are not used because they are for something which you may not be particularly fond of. There is a simple way around this problem. There are several sites on the internet where you can simply swap such cards with someone for cards of your choice. In case you prefer cash you can sell them as well, but at a discount.
Gift cards overall are a great way to let the recipient choose what he wants and it's an easy way to stick to a budget.