The gift card has become the knee-jerk thing to buy when you’re not sure what to give someone. But in light of the fees and restrictions that come along with gift cards, cold hard cash is certainly the more useful—and arguably the more thoughtful—way to go.
The WSJ’s Cheapskate column ruminates on the cash-gift card question, pointing out some really obvious but overlooked advantages of cash:
Suppose someone invented a gift card so versatile it could be used almost anywhere to buy almost anything.
This gift card would be good forever and would be accepted in many foreign countries. It would be available in multiple denominations and sold in multiple locations. You could bend it in half—or even leave it in the pocket of your trunks when you went for a swim—and it would still work fine.
Wait a minute. Somebody already invented that go-anywhere gift card. It’s called cash.
Cash is crass: That’s the argument favoring gift cards. But come on. Isn’t this a game we’re all playing? Isn’t it semantics? You make the choice to give cash or a gift card for basically the same reason: Because you’re unsure what to buy the recipient, you don’t want to buy the person something that they don’t like or can’t use. Who doesn’t like cash? What’s more useful than cash?
Choosing a gift card may actually be more about the giver than the recipient anyway. (It’s always about you, isn’t it?) From the WSJ piece:
It turns out that many gift-card purchasers still want some control over the present.
“The problem with the cash is not with the recipients—the recipients like to get cash,” says Dan Horne, a marketing professor at Providence College who has studied gift cards. “The problem is that givers don’t like to give you cash, and then have you buy gas for the car, or beer or cigarettes.”
Message to anyone thinking of buying me a gift: I’ll pass on the cigarettes, but I’d love a full tank of gas or, even better, some good beer. Oh forget it, just give me some cash and I’ll figure it out myself. I promise to appreciate all the thought you put into giving me exactly what I wanted.
Related:
Amex Drops Some Gift Card Fees. Know What? You Still Shouldn’t Buy Them