The holidays are upon us and many are already knee-deep in gift shopping. And, like clockwork, an old question has once again reared its head: Which is the better gift, cash or a gift card?
First off, neither of these gifts are the ideal solution. In a perfect world, we’d all be able to think of customized presents for everyone in our lives. We’d know exactly what the person enjoyed and exactly what he or she needed. But unless you’re Miss Cleo, that famous psychic, you’re not going to be able to read minds. In fact, I think it's been proven that Miss Cleo can’t even do that.
Presents like wads or cash or gift cards only work for people you do not know well. They are useful ways to say thank you to those who provide services over the year, like a kid’s teacher or a postal worker. But don’t try and give your spouse a gift card to Sears and then wonder why you get a dirty look in return. For those you know intimately, both these choices are a lazy option.
When they are appropriate, however, gift cards can work wonders. Here are a couple of reasons why gift cards are a better gift than cash:
1. If you customize a gift card to reflect a person’s interests, it can show a thoughtfulness that cash does not. When I worked as an administrator at a Pilates studio, some of the clients bought me Starbucks gift cards for the holidays after noting that I consistently had a massive venti coffee on my desk.
2. A gift card can force someone to spend money on his or herself. A lot of people have trouble purchasing material items for themselves, even when they need new things, so a gift card can be a helpful push in the right direction. You can’t control what the person purchases, but you can cater the type of gift card to an area in which you know they need new items.
And two why cash might be more appropriate:
1. According to a recent interview with the president of the Consumers Association of Canada, up to 40 per cent of gift cards go unused. People only use gift cards that are immediately useful. If you don’t know someone well enough to know what they like or what establishments they frequent, cash might be a better option.
2. It is sometimes difficult to use an entire gift card without going over. If you buy someone credit at Tim Horton’s or another coffee shop, they can likely spend it accordingly. But if you give gift cards to clothing stores or anywhere similar, it is not always possible to find a purchase that fits the exact amount. Your gift might either be too little to purchase a whole item, or the credit might exceed the price of one item, with leftover money to spare. If somebody wouldn’t normally have spent money in that particular store (and, thus, does not want to put out the difference to buy a second item), the unused credit after the initial purchase will likely go to waste.
Whether you choose to give someone a gift card or cash, most people will be appreciative of the gesture, especially if the gift is an unexpected one or one designed to express thanks. With family members, it’s always easiest to ask for a list of desired gifts to avoid this conundrum. Ask for double or triple the number of items to keep an element of surprise.
Do you give people cash or gift cards for the holidays? Which would you rather receive?
