Money

Gifts Are Better When There’s A Deadline

Gift cards are perfect gifts for the person who has everything, but—contrary to what one might assume—gift cards are more fun for the recipient when they expire sooner rather than later.

Photo by brettneilson.

Why? Because as anyone who’s found an expired gift card buried deep in a junk drawer knows, you’re more likely to use that gift card when you get it if it’s going to expire soon. Turns out that, just like work, short deadlines force people to get fun done, too.

“While individuals given a longer time frame are more positive about and expect to be more likely to complete an enjoyable task, they are actually less likely to do so,” the behavioral economists Suzanne B. Shu and Ayelet Gneezy write in an article under review at the Journal of Marketing Research.

As The Atlantic points out, that means that if you’re looking to give someone a gift certificate to that day-spa, it might be best to ask for a short expiration.

The Gift-Card Economy [The Atlantic via Freakonomics]

Tagged:

Comments (AU Comments | US Comments)

  • moonablaze

    @Kyran:
    so did the state of California. most retailers still print them, but they'll honor the expired ones when you point out that it's illegal.

    moonablaze

  • RenFromPenn

    @protospork: Those who are trying to avoid giving a gift that the recipient may not like should just give cash. It's accepted everywhere and it never expires.

  • Adriel Douglass

    Here's what you do. Peel off the "best if used by" sticker from a loaf of bread or something and stick it on the back.

    Not only will it draw attention to the date, but it will also get a laugh too!

    Adriel Douglass

  • AliyaBaazigar

    My viet wife has introduced me to such a wonderful concept - giving CASH! It never expires and is good at every store. When my wedding came - I was happy to have over $20k in cash rather than stupid toasters and stuff.

    AliyaBaazigar

  • SagunaJobonomic

    Gift cards are a scam. The only reason gift cards exist is that it is an easy way for companies to get FREE MONEY. Some percentage of gift cards will always be forgotten, or won't allow the recipient to get exactly what they want. I've gotten gift cards for stores that don't exist in my state. Whoever bought that card for me just gave a gift to the corporation, and stiffed me! We already have a lightweight-universally accepted gift card available in many denominations. We call it CASH! You can use it ANYWHERE! It NEVER expires! It fits in your wallet!

    SagunaJobonomic

  • superFLYguyO

    @Giao Phan: Yep. Shouldn't this be the case everywhere? It's like saying cash expires.

    superFLYguyO

  • Angry Numismatist

    Well if you're going to do it, don't do it half-assed, make the expiration date for HOURS and really force your hand.

    Angry Numismatist

  • wickedcupofjoe

    I don't mind giftcards - as a mom, I'd much rather my sisters combine the $ they'd give me and put it on a card to a specific store (Sephora, Bath & Body Works) since I'm more likely to spend it on myself than the kiddo. ;)

    I don't like the idea of a short expiration period. Especially when most of the time people don't look at the expiration period. If it's an actual certificate (eg spa day) then maybe but otherwise, that is just icky.

    Now excuse me while I go dig out that Sephora giftcard I got in February and check the expiration date! LOL

  • guardianfox

    This idea belongs on halfbakery.

  • guardianfox

    @Kyran: Rightly so too. The retail chains make many millions on expired cards.

    Too bad it's not policed. I still know of a few chains that do it.

  • Paul Keck

    As Dilbert's mom said re: gift certificates, "Oh, I love it, dear. You've traded your money for something that's just like money, but much more restrictive."

    Paul Keck

  • _momo_

    Gift cards with expiry dates are the world's biggest scam. It's just free money for retailers.

    I would much rather give and receive cash.

    _momo_

  • knightracer

    This article was brought to you by the gift card company.

    knightracer

  • Jess Owen

    Any sales or marketing professional knows that in order for an offer to generate response you have to create a sense of urgency.

    As the Giver of the gift: Once it is given, let it go. I was always taught "It's the thought that counts." You should give with NO STRINGS ATTACHED, that includes no requirement to use the gift.

    Jess Owen

  • protospork

    @protospork: ...I meant to agree about the expiration date thing. (Where the hell did the edit button go?) Gift cards may be awesome but the deadline idea is terrible.

    protospork

  • protospork

    @RenFromPenn: Gift cards are a great gift. Instead of giving someone something they're just going to pretend to be grateful for, then shove in a closet for years, a gift card allows them to get the gift they wanted.

    Also, most gift cards don't expire for at least two years - I've never known anyone to leave one sitting around untouched for half that long.

    protospork

  • Giao Phan

    It's unlawful in California for gift cards/certificates to expire.

    Giao Phan

  • Nollie

    I also think gift cards are a fantastic gift, so long as they are from a store which you have some interest in. Don't get me wrong, I am grateful for all the gifts I receive, but a gift voucher for Amazon can go far further than one for the local super-market (great for groceries though).

    Nollie

  • derekhaltom

    I don't think gift cards are that bad of an idea. Last year for my birthday I let everyone I know that I was wanting to get a new monitor at our local Sams, and then I either got money or a Sams gift card. When the birthday rolled around, I had enough to get a pretty decent monitor, everyone had a really easy time picking out what they were going to get me, and then we all got drunk.

    That to me is a perfect birthday, with perfect gifts given.

  • RenFromPenn

    What a terrible idea. First off, you can't be bothered to put enough thought into this to get the person an actual gift. Next, you are purposely going to try and give them something that expires soon. What if they fail to check the expiration date and don't notice your "thoughtful" gesture? Then they are just left with a worthless piece of plastic.

  • jc364

    So, what happens when the gift card expires? Is the gift-recipient just out of luck? As the gift giver, I don't think I would want to risk that.

    jc364

  • computermom

    I don't agree at all - some of us are extremely busy and can't take off to go shopping at the drop of a hat. Buy a card that doesn't expire or do something else. We still haven't found time to go to Atlanta for a special dinner we were given ... uh like two years ago!

  • orlo

    Instead of a gift card, give people cash and then quickly handcuff yourself to them. Since you've hidden the key in the mall someplace, they will be forced to go shopping immediately.

    orlo

  • greatodinsraven

    Gee. Thanks for remembering to get me something in the checkout aisle at Safeway.

    greatodinsraven

  • Kyran

    In Canada, the CPA banned expiration dates on retail gift cards. o_o

Post Your Comments

Got something to say? There are two ways to comment:

1. Guests

Click here to comment instantly.

2. Facebook Users

Click below to comment using your Facebook account.

We're looking for comments that are interesting, substantial or highly amusing. If your comments are excessively self-promotional, obnoxious, or even worse, boring, you will be banned from commenting. All comments are moderated.