September 9, 2019
I’ve ranted about gift cards before. Basically, you take money that’s good everywhere, and turn it into a currency that can only be spent at one place. And that one place gets a heck of a deal: the person redeeming the gift card is likely to spend more than the face value of the gift card or, better yet for the retailer, not spend it at all.
According to this article in The Atlantic, in 2018, the U.S. gift card market was worth $95.7 billion.
Of that, between $2 billion and $4 billion will be left unused.
And now some states want a piece of the action, arguing that the unspent money is “unclaimed property” that should revert to the state’s treasury.
Why not just be tacky and give your nephew cash for his graduation?