Personal Finance Advice

Do you remember the good old days when instead of a barrage of gift cards you would receive checks, cash, or even an actual gift when the time came for a celebration? Of course, a gift card can be a fantastic gift if you actually like the retailer that the card is for and if the card doesn’t come with a variety of usage fees attached to it, but what do you do with gift cards that you don’t really care to use?

Option One: Regift.  Even if you don’t like the store that the gift card is for, chances are you know someone who does.  Hold on to the card and send it on to someone else for a birthday gift or holiday gift.  Just be sure that there is no inactivity fee or other telltale sign that will pop up making it blatantly obvious to the recipient that she isn’t the first owner.

Option Two: Sell or Swap.  There are websites online designed to allow people to sell or trade unwanted gift cards.  Using these sites you won’t earn 100% of the value of the card, but you may be able to make some money from selling the card or at least trade it for a card of a little less value, but from a retailer you actually will visit.  Some online auction sites also feature sections where you can sell unwanted gift cards, but check to make sure the card is indeed transferable before advertising the fact that you’re selling it.

Option Three: Use it.  Why not give the retailer a try? Unless you have a ethical stance against the retailer there is no reason why you shouldn’t go ahead and venture into the store to try to find something that you’ll like within the price range of the gift card you received.  Who knows…maybe you’ll discover that you actually do like the store.

Option Four: Toss it.  This is certainly a last resort, and shouldn’t be done unless you can’t even find a charity willing to take the card off your hands.  Sometimes a gift card is for such a small amount of money - and for such an obscure retailer - that you just want to toss it into the trash.  Although this is an option, it isn’t the best one.  Like it or not, this is essentially the same thing as tossing money into the trash.  Hand the card off to a stranger on the street instead of throwing it away.

If you actually do like the retailer that the card is for, keep these things in mind:

Hold on to the card until it’s completely depleted.  If the card is for a retailer you use frequently, place the card in your wallet and use it each time you visit until it has a zero balance.  Even if the card only has a couple of dollars left on it after your initial purchase you should still keep it and use it the next time.  If you don’t, it’s like giving free money to the retailer and it’s not utilizing the gift to the highest extent.

Register the card if it’s for a large amount.  If you get a gift card with a particularly generous balance then you should check to see if the card can be registered online with the retailer.  This will allow you to receive a replacement card if the original gets lost or stolen. 

Stay in the price range of the card.  If the card is for a retailer you adore - yet can hardly ever afford to shop at - then try your best to keep your purchase within the budget of the amount set on the card.  A $30 gift card at Godiva will get you a nice box of truffles…or it will augment the payment of a $120 chocolate collection.  The best gift is one that you don’t have to reach into your own pocket to help pay for, so stay within the price range of the gift card.

If you’re the one buying gift cards for your friends in family, try buying cards that can be used in a variety of places such as mall gift cards or prepaid credit cards.  These can be great gifts as long as they don’t have a ton of fees associated with them.