So what’s your basic philosophy? Break it down for me.

Can I just give someone a gift card without the extra goodies you suggest?

How much money should I put on a gift card?

But won’t I look cheap if I can’t put much money on the gift card?

Is it okay to give a kid a gift card?

Do you let your kids cash in gift cards on anything they want?

Are you worried about gift card fraud?

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Q. So what’s your basic philosophy? Break it down for me.

A. It’s simple. Always give the recipient something inexpensive, free, or homemade to “open” now in addition to the gift card that can be enjoyed later. It can be as simple as a candy bar, as personal as a family recipe, as inexpensive as a homemade bookmark from the kids, or as sensible as a pair of socks. Bulking up the gift card with a box or something random won’t work. The pairing has to make sense or tell a story. Choose something that demonstrates you know the person well enough to get an actual gift, but would rather they have a choice in the matter.

Don’t worry. You don’t have to figure this out all on your own.  On this site are hundreds of suggestions you can use to jump start your own creativity.

And if you come up with some good ideas of your own–please share them with me. Where appropriate, I’ll post them on the site and credit you with the suggestion.

Q. Can I just give someone a gift card without the extra goodies you suggest?

A. Of course you can! Gift cards are awesome and I wish people would gift card more often without feeling guilty. But adding something extra means you get to deliver more than just a card and the recipient gets to “open” something right away. More fun for everybody.

Q. How much money should I put on a gift card?

A. First decide on an amount that works for your budget. Then select a gift card to a place where that amount can be redeemed without additional cash. For example, $15 should cover a trip to the ice cream parlor or smoothie shop. But it won’t go far at a restaurant with tablecloths or a high-end clothing store in the mall. So pick a gift card amount that is comfortable for you and useful to the recipient.

Q. But won’t I look cheap if I can’t put much money on the gift card?

A. I hear ya. We’ve gone from scraping price tags off gifts so our loved ones won’t know how much we spent to making the dollar amount the near focal point of the present. It can be embarrassing (“I don’t have much money”) and make you feel cheap (“And I’m sure not spending it on you.”). But that’s where your creativity can make a difference.  Even a $5 gift card can be special if you partner it with an item that sends a message–candy is an inexpensive solution. Gift card downloadable tunes, a pack of Pop Rocks, and a note that says, “You Rock!”  Grab a 100 Grand chocolate bar, $5 card to a sandwich shop, and package it with a note, “Wish I had all the money in the world to spend on you, but hope you’ll let me treat you to lunch instead.”  Too corny? Ok, I’ll keep thinking.

Q. Is it okay to give a kid a gift card?

A. Absolutely! My kids love getting gift cards and I enjoy taking them shopping with their “own money.” Just be extra cautious in selecting a dollar amount and a destination that works for the child and her parent. My daughter got a $15 gift card to an expensive specialty store on her 6th birthday. We still haven’t redeemed the card because I can’t take her there without spending a small fortune myself. Gift cards to kid-friendly eateries, movies, and department stores are some of our family favorites.

Q. Do you let your kids cash in gift cards on anything they want?

A. Yip. It’s a valuable teaching opportunity. I want the kids to understand that the gift card is for a specific amount and they need to spend within that limit. I also encourage them to look for something they really want (and are always bugging me for!) rather than something sparkly that catches their attention in the moment. As a result, my kids have made some surprisingly mature choices–clothes instead of toys, a game for the entire family, and sometimes even choosing to save a portion of the gift card for later. They’ve also made some poor choices and later regretted it. But that’s a teaching moment as well. Of course, the shopping trip also gives us a chance to practice math in a real world setting.

Q. Are you worried about gift card fraud?

A. Much has been done by stores and gift card manufacturers to prevent fraud, but I guess it’s still a possibility. Understanding how gift card fraud works, however, can help you avoid it.

Since a gift card has no value until it’s activated, gift card fraud is a bit of waiting game. Someone inside the store must record the number on a gift card before it’s purchased. After the card is purchased and activated, the thief then has to redeem the card before the recipient does. This can be done by making a fake duplicate gift card or by using the gift card online where the physical card is not required. The timing has to be perfect and typically requires at least two parties working in concert–something that is much easier to do in a small shop with one deck of gift cards than a large store with a kiosk full of gift cards.

To further protect yourself, do the following:

	* Buy gift cards from a store that carries a large number or wide variety of cards. The sheer volume of cards would make it difficult for someone in the store to be tracking cards that have been or will soon be activated.
	* Buy gift cards that have a PIN on back–and check to be sure the PIN hasn’t already been scratched off.  Many online sites require entering the PIN when the card is redeemed. Without the PIN number from the actual card, the transaction won’t work.
	* Keep the receipt from your gift card purchase and give it to the recipient. If there is a problem, the store will have a record of how much money was supposed to be on the card, when it was redeemed, and the clerk involved in the transaction. (This is good practice any time you give a gift card–the information could help resolve computer or honest clerical errors as well.)