The gas prices have more than doubled in the past year, the financial and housing markets are in turmoil, and food costs have skyrocketed. This leaves many Americans struggling to purchase holiday gifts without going broke.
According to Professor Dan Horne from Providence College, gift cards can be smart ways to shop. “Gift cards have been growing in popularity each year,” Horne says. “Because they are so practical, they have become a very acceptable gift among family and friends.”
This is especially true for branded gift card cards like American Express, Discover Master Card, Master Card, Visa and Master Card. You can select the exact amount to be used for a card that can almost anywhere and any type of merchandise.
“Branded gift cards have become increasingly popular because you can choose the exact amount for the gift, making it easier to stick to a budget,”Horne. “They are also a great way to ensure that the recipient enjoys their gift because they can buy something special or make a purchase they have been putting off.”
But are people really interested in gift cards? The Network Branded Prepaid Card Association conducted a survey of 8,000 adults and found that the majority want gift cards. “Yes.”According to the survey, more than 75% of Americans prefer to choose their gift. Nearly 66% thought that branded gift card were better than traditional gifts. “People enjoy fantasizing about what to buy and then enjoy the experience of a ‘free’ day of shopping,”Horne added
Here are some more tips for Americans looking to reduce holiday spending.
– Create a spending plan. Begin by determining how much you can afford to spend on holiday purchases. Take into account travel, food, entertainment, and presents. Then add up the total costs.
– Know your limits. You can make a list of recipients to determine how much you will spend on each one. If you can’t afford to spend as much, you can prioritize the people you want gifts for or decrease the amount.
– Track the money. Once you have a spending plan in place, track your money. It’s easy to make sure you stay within your budget by purchasing a prepaid card with all your holiday-budget money loaded. This will allow you to easily track your balance via phone or online.
