4 ms·

> Unless there's a significant financial incentive to do so (ex: 2-to-1 match), don't give people gift cards. Gift cards are the biggest scam ever pulled by the

by dpark 10y ago

> Unless there's a significant financial incentive to do so (ex: 2-to-1 match), don't give people gift cards. Gift cards are the biggest scam ever pulled by the retail industry, or more specifically, perpetuating the idea that giving cash is taboo. The problem is that cash often feels like not giving a gift at all. If you exchange fifty-dollar bills with a sibling, it feels pointless. Gift cards can alleviate that feeling. If you give your sibling an iTunes gift card it doesn't feel like nothing was exchanged even if they give you one back. Gifts are also an opportunity to give someone something they wouldn't typically buy for themselves. Ideally that would be a thoughtful gift but if you can't think of one, cash is likely to end up in the "general fund", while a gift card to a restaurant or a massage or a bookstore will be used for its intended purpose (with some risk of it being lost or sold on some card resale site).

muninn_ 10y ago
This is true, but I think a better solution is to just buy a gift instead of cash or a gift card.
soylentcola 10y ago
My (to be fair, minor) issue with gift cards is that they're essentially saying "hey, have some money...but you can only spend it at this one place of my choosing, not yours". I'm aware that this is pretty low on the list of problems you'd hate to have but it's there nonetheless. Let's say a relative has heard me talk about some Arduino project I'm messing with or something to do with building a computer. They don't know much about either of those things but they know I like "techie" stuff and gadgets so they get me a gift card from Best Buy, as that is the only electronics store they're really aware of. Now I've got a $100 gift card to a store that either doesn't sell any of the things I'd want to buy or charges a hefty markup over what I'd normally be willing to pay. Sure, I could sell the gift card to some bargain hunter for $95. They'd get $5 off, I'd get most of the value to spend elsewhere... ...but that's a hassle and not at all what the gift-giver would want to necessitate anyway. The other major option is to just suck it up and either buy something I don't really want/need out of the available Best Buy catalog or maybe buy that $100 item that I would've just found for $70 at Microcenter or Newegg. I think you nailed it when you pointed out issues of perception and tradition. Giving cash to someone other than an aging/retired parent or a young child comes off as odd. It's almost like you didn't care enough to think of a gift that they would actually enjoy or shows that you know them. I just think gift cards are about the same in that regard, only less desirable or useful.
- toomuchtodo 10y ago
  I loved US gov EE savings bonds. LOVED THEM. I could say, "Here. I'm giving you a gift of investment, that will grow over time." It's almost impossible to buy the paper version now unless you're using your tax refund to do so.
  - VLM 10y ago
    No its definitely impossible and a tax refund can only get I series paper bonds unless its changed yet again. Also the rigged CPI-U is lower than the real world inflation rate, so you're basically buying a piece of paper for $100 today that can be sold for $90 years later plus you get to pay federal income tax on the inflation protection part (So $100 stuck in a mattress would be worth $80 in a couple years so you get to pay $10 worth of income tax).
- lmm 10y ago
  Isn't giving someone an actual gift the same only more so though? Like, if the relative gave you an actual specific electronic component, you've likely got something you'd never normally buy, at a heavy markup, and you can resell it but you're going to lose more than $5 on that deal.
- AnOscelot 10y ago
  >"hey, have some money...but you can only spend it at this one place of my choosing, not yours". In some circumstances, that's actually an advantage, and works as a positive for the recipient. When I was in college, money was tight. Had to be very careful with every dollar. When relatives would give me money for holidays, it would just go into the general fund and had to be treated with the same care as the rest of it. That money was certainly appreciated and made my life easier, but not a lot of fun was had with it. But when I'd get gift cards to Amazon or Best Buy or Borders, suddenly it was a license to go crazy. To recklessly buy electronics, books, and luxuries I couldn't otherwise justify. It wasn't just a gift of money. It was a gift of money without worries attached.
  - tjr 10y ago
maxerickson 10y ago
My brothers and I alleviated that feeling by not giving each other stuff anymore. Maybe a knickknack or a tchotchke, just not "things we would each go ahead and buy if we wanted them".
- CalRobert 10y ago
  For a few years running my sister and I bought each other Amazon GC's (it was always mildly awkward when the amounts didn't match). It really illustrated the madness of adults with decent jobs buying each other random crap for no particular reason.
munificent 10y ago
The only reason I think gift cards feel more like a gift is because it means the giver put some thought into what you might want to spend it on. Thoughtfulness is important. But gift cards themselves suck. They are strictly worse than cash. If you want to be thoughtful but give them something more useful, give them cash with a card that says, "I thought you might enjoy spending this on ___."
- avivo 10y ago
  Someone should make realistic looking fake gift cards that you can put cash bills inside. Or for the HN crowd, perhaps bitcoin wallet info.
  - Symbiote 10y ago
    Just use any greetings card and a paper clip, or cut a slot with a knife. Sometimes you can buy the right kind of cards in the places you normally buy greetings cards. Search "money enclosed greetings card".
Symbiote 10y ago
Some of my relatives would give cash, with a request that I spend it on books, or a restaurant, or at the pub. That seemed a good balance: my aunt doesn't have to pick a CD or limit me to a single store. The UK has a national book tokens scheme, essentially gift cards that are accepted at almost all book shops (national chains and independents). This was a common prize for winning a competition at school, or similar. http://www.nationalbooktokens.com/ http://www.nationalbooktokens.com/
littledot5566 10y ago
This is where the Asian culture 'gets it right'. Instead of putting money in a regular envelope, they color it red. Now it's a fancy hong bao, or red envelope.

by dpark 10y ago

muninn_ 10y ago

This is true, but I think a better solution is to just buy a gift instead of cash or a gift card.

soylentcola 10y ago

My (to be fair, minor) issue with gift cards is that they're essentially saying "hey, have some money...but you can only spend it at this one place of my choosing, not yours". I'm aware that this is pretty low on the list of problems you'd hate to have but it's there nonetheless. Let's say a relative has heard me talk about some Arduino project I'm messing with or something to do with building a computer. They don't know much about either of those things but they know I like "techie" stuff and gadgets so they get me a gift card from Best Buy, as that is the only electronics store they're really aware of. Now I've got a $100 gift card to a store that either doesn't sell any of the things I'd want to buy or charges a hefty markup over what I'd normally be willing to pay. Sure, I could sell the gift card to some bargain hunter for $95. They'd get $5 off, I'd get most of the value to spend elsewhere... ...but that's a hassle and not at all what the gift-giver would want to necessitate anyway. The other major option is to just suck it up and either buy something I don't really want/need out of the available Best Buy catalog or maybe buy that $100 item that I would've just found for $70 at Microcenter or Newegg. I think you nailed it when you pointed out issues of perception and tradition. Giving cash to someone other than an aging/retired parent or a young child comes off as odd. It's almost like you didn't care enough to think of a gift that they would actually enjoy or shows that you know them. I just think gift cards are about the same in that regard, only less desirable or useful.

toomuchtodo 10y ago
I loved US gov EE savings bonds. LOVED THEM. I could say, "Here. I'm giving you a gift of investment, that will grow over time." It's almost impossible to buy the paper version now unless you're using your tax refund to do so.
- VLM 10y ago
  No its definitely impossible and a tax refund can only get I series paper bonds unless its changed yet again. Also the rigged CPI-U is lower than the real world inflation rate, so you're basically buying a piece of paper for $100 today that can be sold for $90 years later plus you get to pay federal income tax on the inflation protection part (So $100 stuck in a mattress would be worth $80 in a couple years so you get to pay $10 worth of income tax).
lmm 10y ago
Isn't giving someone an actual gift the same only more so though? Like, if the relative gave you an actual specific electronic component, you've likely got something you'd never normally buy, at a heavy markup, and you can resell it but you're going to lose more than $5 on that deal.
AnOscelot 10y ago
>"hey, have some money...but you can only spend it at this one place of my choosing, not yours". In some circumstances, that's actually an advantage, and works as a positive for the recipient. When I was in college, money was tight. Had to be very careful with every dollar. When relatives would give me money for holidays, it would just go into the general fund and had to be treated with the same care as the rest of it. That money was certainly appreciated and made my life easier, but not a lot of fun was had with it. But when I'd get gift cards to Amazon or Best Buy or Borders, suddenly it was a license to go crazy. To recklessly buy electronics, books, and luxuries I couldn't otherwise justify. It wasn't just a gift of money. It was a gift of money without worries attached.
- tjr 10y ago

maxerickson 10y ago

My brothers and I alleviated that feeling by not giving each other stuff anymore. Maybe a knickknack or a tchotchke, just not "things we would each go ahead and buy if we wanted them".

CalRobert 10y ago
For a few years running my sister and I bought each other Amazon GC's (it was always mildly awkward when the amounts didn't match). It really illustrated the madness of adults with decent jobs buying each other random crap for no particular reason.

munificent 10y ago

The only reason I think gift cards feel more like a gift is because it means the giver put some thought into what you might want to spend it on. Thoughtfulness is important. But gift cards themselves suck. They are strictly worse than cash. If you want to be thoughtful but give them something more useful, give them cash with a card that says, "I thought you might enjoy spending this on ___."

avivo 10y ago
Someone should make realistic looking fake gift cards that you can put cash bills inside. Or for the HN crowd, perhaps bitcoin wallet info.
- Symbiote 10y ago
  Just use any greetings card and a paper clip, or cut a slot with a knife. Sometimes you can buy the right kind of cards in the places you normally buy greetings cards. Search "money enclosed greetings card".

Symbiote 10y ago

Some of my relatives would give cash, with a request that I spend it on books, or a restaurant, or at the pub. That seemed a good balance: my aunt doesn't have to pick a CD or limit me to a single store. The UK has a national book tokens scheme, essentially gift cards that are accepted at almost all book shops (national chains and independents). This was a common prize for winning a competition at school, or similar. http://www.nationalbooktokens.com/ http://www.nationalbooktokens.com/

littledot5566 10y ago

This is where the Asian culture 'gets it right'. Instead of putting money in a regular envelope, they color it red. Now it's a fancy hong bao, or red envelope.