Gift Card Etiquette: How Much Should You Give? - Frugal Living Tips & Articles | Save.ca (2024)

FAQs

Gift Card Etiquette: How Much Should You Give? - Frugal Living Tips & Articles | Save.ca? ›

Here are some guidelines to give you an idea of what to spend. For co-workers, casual friends and your children's teachers, stay in the $10 to $20 range. Gift cards for close friends and family members can range from $25 to $100.

It appears that the general amount for a birthday celebration is around $25, no matter the relationship. Money etiquette experts suggest spending $10 to $20 for classmates while expanding the budget to $25 for close friends, $50 for relatives and upwards of $100 for your own children.

You want to give an amount in the gift card that seems appropriate. General etiquette is usually under $20 for casual acquaintances, like co-workers, $30-$75 for close friends and family members and more for someone like your spouse or for a big occasion, like a wedding.

Fifty dollars goes a long way, and you can use it for the kinds of stores suitable for multiple purchases, like some of the other options on this list. If, for instance, your friend loves to go to Starbucks, spending $50 on a gift card provides them with a lot of value. That's enough about Starbucks.

The Basic Rules

Most gift cards sold by retail sellers cannot contain an expiration date or a service fee, including a fee for dormancy, or nonuse. Any gift card sold after January 1, 1997 is redeemable in cash for its cash value, or subject to replacement with a new gift card at no cost to the purchaser or holder.

Five and ten-dollar gift cards are great gift options, but you always want to ensure the gift card covers a significant amount of the bill, with the one exception where you know they will go to the place with or without a gift card.

A $25 budget is the Goldilocks gifting amount: It won't burn a hole in your pocket, but it's also enough to find a thoughtful gift for people who have everything (including sentimental finds). Plus, the price point is also perfect if you're shopping for Secret Santa gifts or white elephant gifts.

If $15 won't cover the cost of a meal at a particular restaurant, you'll be forcing the person to spend money to make up the difference. In fact, the Bank of America survey found that 42% of consumers spend more than the amount of the card's value. If that will result in a hardship for them, it's not much of a gift.

For co-workers, casual friends and your children's teachers, stay in the $10 to $20 range. Gift cards for close friends and family members can range from $25 to $100. When you're selecting a gift card for a spouse, parent or someone else who's very special, choose a card worth $75 or more.

What is the average value of unused gift cards in America? ›

Question of the Day: What is the average value of unused gift cards per person in America? Gift cards are one of the most requested gifts, but how much of the value is never used? Answer: The average unused amount is $187 per person, for a total of $23 billion.

“There are any number of reasons why the card may not have been properly activated,” LaRocca said. Give the gift-card recipient the receipt (you may want to make a copy of it for your records). Having the sales receipt will help to verify the card was purchased in case it's lost or stolen.

California doesn't enforce a gift tax, but you may owe a federal one. However, you can give up to $18,000 in cash or property during the 2024 tax year and up to $17,000 in the 2023 tax year without triggering a gift tax return.

While giving or accepting gift cards may implicate the anti-kickback statutes, if the gift cards are not intended to induce referrals, it is likely that administrative sanctions will not be imposed.

Under the CARD Act, gift certificates and store gift cards can't expire for at least five years from the date of issuance (in the case of a gift certificate), or the date funds are last loaded on the card (if it is a store gift card or general-use prepaid card). (15 U.S.C. § 1693l–1, 12 C.F.R. §1005.20(e)(2)(i)).

But if it's a birthday gift for a close friend or family member—or for a milestone birthday, like turning 18 or 75—it's not uncommon to spend in the $50 to $100 range.

You want to give some indication of what the amount is." So what would Meier recommend? Jotting the amount on the back of the card or the paper slip some gift cards come with. Meier says another way you can go about is by specifying the experience instead of the amount.