The Wall Street Journal had an interesting
article singing the praises of cash over gift cards. Let's look at the benefits of cash:
- You can use it for anything you want, even non-gift type things like groceries and gas.
- It's accepted everywhere.
- It doesn't expire, or come with a fee, or anything likewise annoying.
The only con, really, is that come people consider cash to be sort of a tacky present. But maybe those people are stupid.
As for gift cards, the Journal groups them into two categories:
closed loop cards, the ones designated for certain stores, like The Gap, and
open loop cards, those prepaid debit cards by Visa, American Express, and others.
Closed loop cards, of course, have the disadvantage of only applying to certain stores. And the Journal estimates that 5 to 10 percent of the money on gift cards are never spent—that's probably the extra two dollars or so and change I always forget I have left over.
Open loop cards are currently subject to some aggravating fees, like the $3 to $7 it costs to purchase them, and even monthly fees for "dormancy" if you're slow to spend your, um, gift. The Journal says a new law will restrict some of these fees starting August of 2010, and American Express just changed its policy to eliminate dormancy fees.
But even though cash has so much going for it, gift cards are still very popular. The National Retail Federation recently conducted a survey among shoppers asking what they wanted for the holidays, and gift cards came in first place with 55 percent of the votes.
Personally, I like getting closed loop cards, because it kind of forces me to indulge and buy myself a gift, even if it's just a sweater I needed anyway. I mean, if someone gives me cash I'm probably going to save it or spend it on practical, everyday expenses—but if I get a Gap card, I pretty much have to use it to buy something cute.
Which do you prefer: Gift cards or cash? Do you think cash is ever tacky?Image Source
Comments (15)
I love cash. Generally it is nicer to be ABLE to buy something that I need. Groceries... Rent... etc...
I've gotten the cash card things too. They're ok, I forget they're there though.
I prefer cash. Gift cards are a pain and they only help the people who are selling them. Also recent changes in laws have made the prepaid debit cards like Visa/mastercard/american express gift cards really hard to use. If you want to use them on the net for instance you must now register the cards providing your real name and social security number, sometimes you even have to fax them to the company. So on top of all the problems you mentioned and the fact that they are hard to use I say cash is the better gift.
cash. I can put it toward stuff we need.
I don't have a preference for one over the other.
Cash 100%. That way, you will only buy what you need, instead of all that you want.
I still prefer gifts! In my family, we give ideas of things to buy to whoever has our name. That way you still get something you want or need, but there is still an element of surprise as to what you are getting!
I prefer cash - so I can roll around in it.
I love cash..... <3 It gives me the ability to pick and choose which stores I want to spend it at or save! :3
Seriously, TACKY to give or ask for cash. My goodness. I have given cash to as a gift to thosse I love that I knew needed to pay the heat bill more than they needed a new shirt or whatever else I may have bought them. But asking for cash is basically like saying "I know you are going to spend X amount on me but I'm not going to like what you're going to buy me, so just give me the money." Yeah, that's a great way to get removed from gift list.
@crazygrampastuey@xanga - hahaha, that's the best reason i've heard so far.
cash <3333
There's no thought put into giving someone cash or a gift card for the holidays so I don't care either way.
I prefer cash, but can't say gift cards are without merit. I often find myself spending the cash I get from people on everyday things, while if i get a gift card I'm more likely to buy something special.
cash so i can buy drugs
Lace Wigs
Wedding Dresses