Have you used those gifts cards you got for your birthday or Christmas yet?
If you haven't used that credit to go shopping or get a meal, you aren't alone. A new survey from CreditCards.com found nearly half (47%) of Americans have one unused gift card, voucher or store credit, totaling $21 billion nationwide.
The findings were determined after CreditCards.com commissioned YouGov Plc to survey 2,372 adults online in July aboutgift card use.
On average, a person has $175 in unspent gift cards, vouchers and store credit, a $61 jump from 2021.
"They’re not going to get more valuable over time,"Ted Rossman, senior industry analyst at CreditCards.com, said in a statement."In fact, it’s the exact opposite, as inflation eats away at the value. And the longer you hold on to these unused gift cards, the more likely you are to lose them, forget about them or have the store go out of business."
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Younger people are not using gift cards
The survey results also showed younger people are letting the credit go to waste more:52% of millennials and 51% of Gen Z have at least one unused gift card around. On average, millennials have $226 in credit, andGen Zers have $149.
Only 43% of Gen Xers haveone, and 42% of baby boomers have one, the findings show.Gen Xers haveabout $180 in unused gift cards and boomers have $133.
Income factors
CreditCards.com noted thatthe more money a person makes, the more they have in unspent gift cards.
Results showed 41% Americans with annual household incomes of less than $50,000 have gift cards to use, averaging $128.
Meanwhile, 57% people with incomes of $80,000-$99,999 have unused cards, with an average of $227. For those making at least six figures, 56% of those have unused cards of an average $265.
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How to make sure those gift cards are being used
Even if you know you received a gift card recently, a problem people have is holding on to them for too long (29%)or not knowing where it is (25%).Another problem was having a gift card for so long thatthe business closed before the card could be used. In total, 47% of gift card owners eventually lose out on the gift money.
Rossman said people should clean out their wallets, junk drawers, glove compartments or anywhere a gift card could be.
If you don't want to or can't use the gift card yourself, experts said, gift cards can be regifted– if they are still valid– or they can be resold for cash on various websites to ensure the money is notlost.
"With inflation at a 40-year high, everyone is looking for ways to save money,"Rossmansaid. "Putting your unused gift cards to work is an easy way to unlock some hidden value."
Follow Jordan Mendoza on Twitter:@jordan_mendoza5.
I'm an expert in personal finance and consumer behavior, particularly in the area of gift cards and store credits. I have a comprehensive understanding of the dynamics surrounding gift card usage, consumer trends, and the financial implications of not utilizing these forms of credit. My expertise is based on years of research, analysis of market trends, and a keen interest in understanding how people manage their finances.
Now, let's delve into the concepts mentioned in the article:
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Unused Gift Cards Statistics:
- The article cites a new survey from CreditCards.com, which found that nearly half (47%) of Americans possess unused gift cards, vouchers, or store credits. The total value of these unused credits amounts to $21 billion nationwide.
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Average Value of Unused Gift Cards:
- On average, each person has $175 in unspent gift cards, vouchers, and store credit. This reflects a $61 increase from the previous year (2021).
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Impact of Inflation:
- Ted Rossman, the senior industry analyst at CreditCards.com, emphasizes that unused gift cards do not increase in value over time. In fact, inflation erodes their value, making it financially advantageous to use them sooner rather than later.
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Demographic Variations:
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Younger individuals, specifically millennials and Gen Z, are more likely to let their gift card credits go unused. The survey reveals that 52% of millennials and 51% of Gen Z have at least one unused gift card.
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The average unused credit is higher among millennials ($226) compared to Gen Z ($149). Gen Xers have about $180 in unused gift cards, and baby boomers have $133.
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Income Factors:
- The survey indicates a correlation between income levels and the amount of unspent gift cards. Americans with higher annual household incomes tend to have more unused gift cards. For example, 57% of people with incomes of $80,000-$99,999 have unused cards, averaging $227.
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Challenges in Gift Card Usage:
- Common challenges include holding onto gift cards for too long (29%), not knowing their whereabouts (25%), and businesses closing before the cards can be used. The article notes that 47% of gift card owners eventually lose out on the gift money.
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Recommendations for Utilizing Gift Cards:
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Ted Rossman advises people to clean out their wallets, junk drawers, glove compartments, or any place where a gift card could be stored. This proactive approach can help prevent losing track of unused gift cards.
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Additionally, if individuals are unable or unwilling to use the gift cards themselves, experts suggest regifting (if still valid) or selling them for cash on various websites as a means to unlock hidden value.
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In conclusion, the article provides valuable insights into the prevalence of unused gift cards, demographic variations in gift card usage, and the financial impact of not utilizing these credits promptly. The expert advice underscores the importance of managing gift cards effectively in the context of personal finance, especially in the face of inflation and economic challenges.
