Gift Card Pitfallsby Mary Ann Romans | More from this Blogger 20 Dec 2007 10:58 AM Giving and receiving gift cards seems like a great trend, doesn't it? This year, according to recent statistics, more people will give gift cards than any other holiday gift. But, unfortunately, there are a lot of pitfalls with gift cards, such as the fact that some states can claim that money for themselves! I bet you didn't know that! So, if you are giving or getting gift cards this year, be aware of the pitfalls they could bring to your budget. Retailers love gift cards. Why? Because many of them are never redeemed, and this is free money to the stores. One in five people admitted that they have an unused gift card that is at least two years old. Retailers refer to this as breakage. Many gift cards come with expiration dates or inactive fees. What this means is that the gift cards will depreciate the longer you hold on to them without spending them. So your $50 gift card may only be worth $40 to $0 in a few months. As mentioned above, some states (my home state of Pennsylvania being one of them) can legally claim any money on a gift card that is more than two years old. In PA, that claim only applies when that card has an expiration date or an inactive fee applied to it, but that is not the case for all states that make the claim. And, if you are one of the shoppers who actually uses the gift card after the holidays to get some great bargains, be aware that there may be pitfalls for you, too. Most people spend more than the amount on the gift card. For example, a $300 electronic device doesn't seem so bad, when it seems as though you are only paying $200 for it. And finally, what about those gift cards that you just can't use, such as a card for free ice cream when you are on a diet, or an iTunes gift card when you don't have an MP3 player? My suggestion is to trade with friends, or in the forums for cards that you can use. Mary Ann Romans writes about everything related to saving money in the Frugal Blog, technology in the Computing Blog, and creating a home in the Home Blog. You can read more of her articles by clicking here. Related Articles: Create Beautiful Gift Certificates Online Inexpensive Gifts You Can Make Learn more about Mary Ann Romans  Mary Ann Romans is a freelance writer and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat. Relevantfrugal tags User Comments No comments on this article yet. Be the first to comment! Community Tags christmas, frugal, gift cards, holidays, thrifty Discuss this article
|
Frugal categories |
