How to Stop Wasting Money on Gift Cards

Depending on who they are, gift cards can be the perfect gift. (Read: Not from a life partner who needs to intuitively know you want a Ninja AF101 air fryer with auto shut off and 30 recipes included.) Gift cards take up little space and allow you to shop without guilt – maybe even splurge on yourself – because what, hey, free money. But there are several ways to easily lose or belittle their value without even wanting to. Avoid these pitfalls if you want to make full use of all the dopamine these tiny plastic cards have to offer.

Use them as soon as possible

It can be tempting to hold onto this gift card for just the right moment, or because you’ve always been taught to save for a rainy day and you don’t want to waste it “too early.” But that’s not the best gift card strategy. A store may cease operations, file for bankruptcy, or close all of its stores within 50 miles of your home. (I will miss you Lord and Taylor.)

Also? You may forget about them or lose their place. According to financial services research firm CEB TowerGroup , nearly $ 1 billion worth of gift cards were not used in 2015, largely because they were lost, forgotten, or hidden with value left over from the original purchase.

So don’t keep it in your drawer for inspiration. (She says, looking sadly at the postcard envelope she received ten years ago, about the shops that no longer exist.)

Treat it like cash (and make a copy)

Would you put $ 100 in cash on a high shelf next to a bunch of cookbooks to use for some unknown future purchases? Probably not – and not worth it with a gift card either. Keep it in your wallet so it is visible and available every time you shop.

In addition, it is recommended that you either scan or photograph it with your phone (including the most important part, the back) so that you have the information you need to re-issue in case of loss.

Track its cost (and secure)

One of the reasons we can keep gift cards is because we don’t know if they still have value. While you can sometimes check online, the Better Business Bureau’s fraud tracking program warns that some websites that claim to check your balance use your ID and PIN to steal value. If this is a concern, call or visit your local store for updates.

If you make a purchase but you still have a small amount left, ask if the seller will return the remaining amount in cash. Some states have gift card laws requiring this if the remaining amount is less than $ 5 or $ 10. Some major retailers even allow you to convert your gift card (for example, from Red Lobster to Outback). It’s always worth asking.

If you receive multiple gift cards at the same time, create a simple spreadsheet listing their values, or use a gift card management app like Gyft or Card Smash to keep track of them all. If you were given several cards from the same seller, ask your regular store if you can combine the balances on one card. Alternatively, you can write down the balance on the back of your card using Sharpie, or track it in the Notes section of your phone. If you need something more to remember, there is always a way to stick it on the refrigerator to keep it in mind.

Resell, register, donate

If someone gives you Home Depot when you’re a die-hard Lowe, instead of waiting for you to find yourself on the sidelines, consider reselling this card. Sites like Raise , CardCash , ClipKard (and others ) allow you to sell gift cards online. You will not receive the full cost (many of them have cited tools to let you know in advance what you will receive, which is usually 60% -90% of the original cost), but it is better than losing it all to a loss, closing shop or distraction.

Either give the card to someone you know will appreciate it, or donate it to your local charity, school, or shelter. Goodwill and The Salvation Army accept unused gift cards, and sites like CharityChoice allow online donations. So there is no reason not to use or share the wealth of a gift card.

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