Thanks to all who voted in last week’s poll. As this press release shows, people waste time and money buying gifts that are ultimately returned or stuffed in a closet. I don’t want to sound greedy here because I truly appreciate the effort made by thoughtful gift-givers. It’s just that in this economy, when people are stretched for both time and money, I hate to see either resource go to waste.

What a Waste

We waste time and money several ways, such as:
- Time spent shopping for gifts that are ultimately returned
- Time spent standing in return lines
- Time spent looking for replacement items that may or may not cost the same amount
- Time spent online calling or cybershopping to find the given item in a better size or style
- Money spent but never recouped when a gift is returned without a receipt
- Money put on store credit that may never get used
- Money spent on shipping that isn’t refunded when an online purchase is returned

And the BIGGEST sin of all (in my opinion)

- Time and Money spent on gifts that are kept but will knowingly never be used.

I’m guilty of all of these crimes. Gift cards aren’t the perfect solution because a poorly selected gift card can be just as wasteful. But if you follow my 5 Steps to Better Gift Card Giving, you’re sure to save yourself time and money on the giving end and I’m betting that the recipient will do the same.

A Toast

So, here’s to gift cards, my friends. May we give them. May we receive them. May they afford us the chance to buy the things we really want or need without wasting so much time and money.

I don't want to feel like Michael did.

The holidays are just around the corner and I’m not ready! I don’t mean that I haven’t bought my gifts yet (I haven’t). I’m just not ready for it to BE the holidays–not ready to pull out the decorations, make “the list,” check “the list” a bazillion times and still forget something. Not ready to gain five pounds. Not ready for the craziness to begin. I’m not quite the Christmas Kranks, but I like a clean house, a simple lifestyle, and under scheduled kids. It doesn’t always happen, but it’s less likely to happen once we start rockin’ around the Christmas tree.

Goal: Simplify with Gift Cards

This year, I am going to use gift cards to simplify my life. Rather than chase all over town buying traditional gifts, I’ll buy gift cards by the armful. And with the time savings, I’ll be able to make the those gift cards more personal. I’m even thinking the kids might find a gift card or two in their stockings. Because one thing I like less than clutter, is wasting time and money. With gift cards, the recipient can buy something he or she wants. With my personal touches, I’ll feel good about giving the gift cards as well.

Goal: Take Advantage of Gift Card Offers

I’ll be on the lookout for the “Give one, Get one” (G.O.G.O.) gift card deals and might even buy gift cards from online discounters. Though I prefer to pick a gift card off the rack so I can hold it, get inspired by it, and check for fees and expiration, the discount savings at places like Plastic Jungle can’t be ignored.

Goal: Budget.

Though it’s hard to find traditional gifts that fit exactly in your budget, with gift cards you decide how much to spend and don’t have to give a penny more. I rarely blow my budget on the accoutrements that go along with the holidays, but I do sometimes go overboard on the gifts. Another reason to stay with the gift cards.

Goal: Enjoy it.

With these parameters in place, I vow to enjoy the holiday season–even embrace it’s coming. If the worst problem I have is too much holly in the hallways, then I’ve got it pretty good. And I do. I just want to simplify the gift giving and keep the budget in check so I can spend more time reveling in the the blessings of this holiday season and less time worrying about it.

Combine gift cards and coupons to save money.

With three kids going back to school (and soccer and football and scouts, etc.), my budget is tapped. We’re reusing last year’s backpacks and lunch boxes to save money, but the kids still needed a few things. So I combined gift cards and coupons to stretch the dollars a bit further. Here’s what I did:

Work It:

1. Scoured the newspaper and mailers for high discount coupons.
2. Bought discount gift cards to go along with the best coupons.

Big Savings:

For example, I received coupon for $10 off a $25 purchase at JC Penney. Then I bought a $25 gift card to JC Penney for $21.50 at Plastic Jungle.

At JC Penney, Ally found two pairs of skinny jeans for a total of $25.99 plus a must-have, embellished top on the clearance rack for $10. The bill came to $35.99 plus tax. With our coupon and gift card, however, we paid almost nothing at the register. By combining discounts, I paid $21.5o to Plastic Jungle for essentially $35.99 in merchandise at JC Penney. That’s 40% in savings.

Going Forward:

Yes, it takes a little work and forethought. Yes, a good coupon can make all the difference. But there are stores like JC Penney, Kohls, Macy’s, and Old Navy that routinely send out special promotions. If you buy discount gift cards in advance and match ‘em up with the coupons as they arrive, you can save a lot of money.

Plan Ahead for the Holidays:

With the holidays coming up, combining gift cards with store sales and coupons could be the relief your budget is waiting for.

Parents required to buy $5000 in gift cards?

In this article about a school’s gift card fundraising program, Sarah Lorge Butler writes that she is not only required to participate, but is obligated to buy $5,000 worth of gift cards to net the school $250. While Butler has the option to write a check to the school for $250, the program gives parents a way to buy things they’d normally buy without spending additional money. In other words, buy $5000 in gift cards to the grocery store, hardware store, office supply store, and so forth. Then use the cards every time you shop. Proponents of the plan say it’s better than pressuring parents into buying wrapping paper, cookie dough, or other fundraising products they don’t need. I get it. But the limit is way too steep for my budget.

In addition to personal shopping, here are a few ways Butler can meet her obligation:

1. Offer to buy the group gift. Think about upcoming baby showers, bridal showers, coach gift, teacher gifts, and other occassions where people pitch in to buy one big gift. Collect money from participants and buy the gift card through the fundraiser program.
2. Give gift cards to her kids. I use gift cards to teach my kids about money because it helps them learn that plastic money (credit cards, debit cards, and gift cards) isn’t limitless. It may seem that way to little eyes when mom pulls a card out at every cash register, but not so. Gift cards help kids learn to shop within a budget. So Butler might consider getting gift cards for times when she might otherwise give her kids cash–allowance, vacation spending money, birthdays, etc.
3. Plan ahead. Think holidays, birthdays, graduation for the year and buy gift cards in advance so you don’t end up buying other things at the last minute. Don’t worry that gift cards will feel impersonal, most people love to receive them and you can add a personal touch using one of my many ideas. And don’t worry about these gift cards expiring because gift card laws have changed. No fees for a year and no expiration for at least five.
4. Build a stash. Buy extra gift cards to pull out for birthdays and special occasions you hadn’t planned for. I usually have a few extra iTunes gift cards on hand because it is a gift card nearly everybody enjoys and can be used anywhere. Amazon.com, Fandango, and online bookstores would also be good.

For any gift card purchased, I’d be sure to enter and track them in an app like Tango Card. This will not only help Butler use the cards purchased, but could speed check out processes that sometimes work faster if you know the balance on the card before starting the transaction.

Savvy shoppers save money with gift card offers

With each holiday, I see an increasing number of bonus gift card offers. They go something like this: Buy a gift card for a specified dollar amount and get a lesser gift card for free. Savvy shoppers can take advantage of these incentives to save a few pennies.

For Example:

For example, my local Safeway is offering a $10 coupon on my next shopping trip if I buy $100 or more in Visa Gift Cards. Now, Visa gift cards typically have an activation fee. But if the activation fee is less than ten dollars, then I could earn a few bucks just by buying the gift card. But do I need a Visa gift card? Sure. Here is how you pocket a few dollars without buying unnecessarily.

Take Advantage:

• Buy a Visa gift card for your personal shopping–an upcoming vacation or just daily expenses. You’re spending the money anyway. Putting your money on the gift card first simply allows you to get the bonus groceries.
• Buy a Visa gift card to put kids on a budget. Got kids going off to college, in need of spending money, or wanting to do a little back to school shopping?  With a Visa gift card, they can shop anywhere they want, but have to stay within the limit of the funds on the gift card.
• Plan ahead and buy gifts early. Think about upcoming birthdays, weddings, or even holiday shopping. If you’re going to spend the money in the near future, might as well save on groceries while you’re at it.

Expiration Dates?

One word of caution is to check the expiration dates. Thanks to gift card laws changing in August, the gift card you buy will be good for at least five years so you don’t have to worry about shopping too early. But the bonus gift card (in this case coupon), is likely only to be good for a specified period of time. So check restrictions before you buy.

Think Ahead

If you’re buying more than one gift card, you might need to do it in separate transactions so you can get the bonus for each gift card purchased–rather than one bonus for the total number of gift cards you buy. Check with the cashier to see if there is limit so you don’t over strategize.

Wish my iPhone had a flash!

I took my kids to see Toy Story 3 this morning. I don’t normally like the animated flicks, but I chuckled even more than the little ones this time. Toys I hadn’t thought about in years showed up on screen like old friends. (Including a few toys I coveted but never got to make friends with, like that three story Barbie Apartment!) But the best part of the day was using the gift card I found last week to offset the cost of admission.

Saving Money

This little Disney-Pixar flashback would have cost me $45 without the gift card. That’s a lot of money for a matinee, especially when I’m trying to stretch the family budget across a summer’s worth of activities.

While a movie gift card may no longer be the most original gift to give, it’s still a great gift for a kid, teen, family, or anybody who likes to go to the theater. The recipient might not use it right away, but is certain to appreciate it when they do.

Make the Movie Gift Card More Personal

Partner a movie gift card with some movie snacks, popcorn, or something relevant to the movie you think they’re most likely to see. For Toy Story 3, for example, get a slinky akin to the one in the movie. For the new Twilight movie, Eclipse, get a gift card to the movies with some fake blood and vampire teeth. Or, if you’re like me, a movie gift card would go perfect with a purse size salt shaker for the tub of popcorn I’d buy once I got there.