Gift cards oftentimes get mixed reactions from people and as the holidays are here, it will elicit the same round of reactions. One one side, there is gift giving purist who will insist that these cards are an insult to tradition. One the other hand, there is the realist who would point out the benefits of using cards in gift giving.
To add to this conversation, USAToday.com even referred to getting gift cards as being gifted socks on Christmas day – you need it but not exactly something you want to get under the tree. The debate is trying to weigh the real-world benefits of a gift card as against the impersonal approach to gift-giving which is supposed to be a personal experience.
Regardless of where you stand, the fact remains that the holidays remains to be one of the best holidays in the year. With that, it also brings with it big expenses that you have to deal with even before Christmas. As you go out and buy gifts for the people that you love, you start to realize that it is a lot harder than it seems.
Gift giving is showing your appreciation for the people in your life and the only other occasion you get to do that aside from Christmas is their birthday. The difference this holiday season is that you buy gifts for all of them rather than one at a time during their birthdays. As you get to the mall to start buying gifts, you start to feel a wave of indecisiveness and panic swell over you as you are faced with a long list, tight budget and not enough time on your hands.
Gift cards are great for the holidays
It is not easy to choose what gifts you will give family and friends and this is the very same reason why gift cards appeal to consumers. Granted that less than 30% of Americans want to receive gift cards according to Bankrate.com, the cards has a pull for various reasons.
- Ability to stay on a budget. How many times have you gone over budget with your gifts because you saw something perfect or better for the person you are buying gifts for. The temptation will always be there to buy something better especially if you really love the person. This is one of the problems gift cards address directly because it gives you the ability to work within your budget. You only spend what you intended to use no more and probably, for a lot less.
- You get the cards on discount. As you pay for the cards either by cash or card, the nice thing about getting these gift cards for your loved ones is you get to enjoy savings as well. Remember how you are able to save money when you buy in bulk at the grocery? The same thing can be applied when buying multiple gift cards. Establishments are more willing to give them to you at a discount. The reason for this is that they are already able to generate foot traffic into their store and there is a chance that the customers would be spending more than what is on the card.
- The recipient gets what they want. When was the last time you got what you really wanted after opening your gift under the Christmas tree? Unless you told your significant other what it is then there is a chance that you would be getting something else. The same thing with the people you are giving gifts for. Gift cards change all that because, with a little effort on their part, they can get what they want for the holidays. The cash gift is almost the same as getting cash on Christmas just not as crass as getting dollar bills in an envelope. The recipient just needs to go the extra mile and use the cards themselves.
- You are still thoughtful. People would be quick to point out that giving gift cards is synonymous to being impersonal because there was not much thought put into the gift. However, this is not always the case. Yes, there are people who might just generically give out these cards as gifts to everyone they know without putting much thought into it. This makes it easy for them but you can do better. Just because you are giving pre-loaded cards does not mean you cannot be thoughtful. Get cards from stores and establishments your family and friends like or even enjoys. This makes the gift a lot better than getting them something they would not have any use for.
- Easy to gift. For DIY-ers, gift wrapping has been an important element of the whole gift giving process. There are those that has perfected this craft and can whip out elaborate wrappers for everyday objects. However, there are people who have a hard time making gifts presentable for the holidays. It is quite annoying to put in a lot of effort into something kids will just rip wide open on Christmas eve but the happiness in their faces are all worth it. For adults, however, you do not need to go through the painful process of meticulous gift wrapping. Add the fact that gifts cards are quite presentable and easy to give out. You can even write a personal note to go with the card to make the gift more personal.
Gift giving sins during the holidays
As the season is a time of giving, a lot of people would be in dire need of holiday shopping tips because they are committing financial mistakes left and right. Here are some of them which you need to avoid leading up to Christmas.
- Not having a budget. There are quite a number of consumers who prefers to just go to the shop and wing it. The result is they end up buying more than what they need or worse, having to plan a second trip because they forgot to buy for someone. A recent survey from TDBank.com shared that about 5 in every 10 American consumers create a holiday budget which leaves 50% exposed to overspending. Holiday shopping should always be preceded with a budget to prevent it from ruining Christmas.
- Not saving up for the holidays. As important as a budget is, you still need to save up for it. Or at the very least, have a solid plan to pay it all back once the statement comes in at the end of the month.
- Charging everything to credit. There is nothing wrong with using a credit card to purchase gifts for the Holidays. It can even be a smart move for some consumers because they get to maximize their rewards and even rebates on their card. The only thing you need to remember if you are using your card is to pay the full amount after the fact. Choosing to settle for minimum payments will cost you more down the road.
Gift cards can be great holiday gifts for your loved ones despite how other people might see it as an impersonal gift. It is just a matter of knowing the person you are giving it to and going the extra mile to personalize the gift.