Holidays are just around the corner, almost intimidatingly so. As the clock ticks, the pressure to find the perfect gift can be daunting, and creativity is not always easy to come by. When it comes to making gifts meaningful, it can feel nearly impossible to come up with ideas for everyone. From friends to significant others to grandparents — the pressure of finding good gifts is overwhelming. Most people opt for gift cards when they cannot find a perfect gift, but this is lazy.
Gift cards are great go-tos for coworkers or distant relatives, not for close friends and family. They show that little thought was put into the gift and time was not taken to plan something personal. This present tells the story of stopping for a quick trip to the grocery store, which shows a lack of effort. Although gift cards can be catered to the recipient by choosing a specific place or company they can be used for, they are still impersonal. Gift cards are simply a glorified, less convenient version of gifting cash. Further, their sale may even brush on the lines of being scams.
Gift cards have spending limits, and once the recipient has gotten close to the limit, the card is useless. If someone received a $50 gift card for Hollister and they have spent $38, what can be bought with the remaining $12? In this economy, $12 cannot even buy a pair of socks at name-brand stores.
Companies can make millions from breakage income, which refers to revenue recognized from services that are paid for but not used. According to the Motley Fool, when Starbucks reported $1.34 billion in gift card balances, the company earned $60.5 million in breakage income. Similarly, Barnes and Noble “earned $35.5 million from unused gift cards, equal to 65% of its operating profit.” Shoppers are also more likely to spend more than the value of their gift cards, according to a study done by First Data.
It can be argued that gift cards offer the choice for recipients to buy their own gifts, but the point of receiving a gift is to get something you have been needing or really want. There is nothing more special than being gifted something that has been on a wishlist for months or being given something related to taste and hobbies. It is heartwarming to be given something with a little thought. Even for those who lack creativity, there are better alternatives, such as plants, candles, favorite candies, blankets and so much more.
There are many reasons gift cards are not suitable gifts. This holiday season, opt out of gift cards and put some thought into presents.
