Last minute shoppers: it's tempting to get a gift card when you're short on time and ideas, and sometimes they make the perfect gift.
Unfortunately, as April Dykman writes for Get Rich Slowly, gift cards come with tradeoffs. The main problem is that your recipient may not spend all of the money you spent -- card value may erode slowly over time, and sometimes they just get lost.
Another pitfall is especially relevant in today's economy: gift cards may lead the recipient to spend more. If somebody spends money they otherwise wouldn't have, you may be doing them a disservice by giving them a gift card. Yes, they get value out of it, but that can create a temptation to spend a little extra that's not in the budget.
As you give gift cards this year, find ways to make the gift meaningful without letting your hard earned money and good intentions go to waste.
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