Gift Cards Take the Guesswork Out of Gift Giving; Tips Help Americans Maintain Budget Control
SAN FRANCISCO--(BUSINESS WIRE)--Dec. 10, 2008--This holiday season, it's popular to be practical, according to a new
study commissioned by Visa Inc. (NYSE:V) that suggests consumers are
sticking to a budget and relying on gift cards to help take the
guesswork out of giving.
More than ever, gift givers are putting themselves in the recipients'
shoes and trying to identify gifts that will be appreciated and put to
good use, ensuring their money is well spent. The majority of U.S.
consumers surveyed said it was 'very important' to give a gift that
their recipients will find useful (73 percent). Notably, 8 out of 10
respondents indicate they would give a gift card because recipients
would be able to choose the gifts they want.
Giving the Gift of Choice
The survey revealed that gift cards provide valuable flexibility for
shoppers and recipients alike:
-- 82 percent of respondents consider it appropriate to give a gift card
that can be used for purchases anywhere, offering recipients the ability
to spend the card on goods and services from the merchants they choose.
That compares to only 45 percent of respondents who felt it appropriate
to give a check as a gift.
-- The majority of those surveyed agree they would buy a gift card this
holiday season because they're convenient for gift givers (79 percent)
as well as recipients (85 percent).
-- Nearly three-quarters said they would give a gift card because they are
an easy way for the gift-giver to track spending (70 percent) and
because they are less expensive to ship (73 percent).
-- And when it comes to buying gifts, an overwhelming majority of U.S.
consumers surveyed felt it was important to give something they can
afford (91 percent). As consumers look to closely manage holiday
spending, gift cards can help to better track and stay within a holiday
shopping budget.
-- Additionally, nearly half of those surveyed say asking for a gift card
this holiday season makes good sense, as they feel other items on their
list might be too expensive (46 percent) or too difficult for someone
else to buy (49 percent).
"This year, Americans are signaling greater pragmatism in their shopping
decisions--even when it comes to purchasing gift cards," said Jason
Alderman, director of financial education at Visa Inc. "While we know
that the convenience of gift cards makes them a popular item for both
shoppers and recipients, it's interesting to note that people are buying
gift cards because they can use them to manage spending and stick to a
budget."
Unlike gift cards that can be used only at a single location, Visa Gift
cards are accepted at millions of locations worldwide--allowing
recipients to buy what they want, when they want. Visa Gift cards are
also covered by Visa's Zero Liability1 policy which offers
protections against lost or stolen cards, as well as for unauthorized
purchases--a level of security not afforded by cash or gift certificates.
Consumers can purchase Visa Gift cards in person, online, or by phone.
For more information, visit www.visa.com/gift.
Practical Budgeting Tips for Practical Shoppers
To help consumers better track holiday spending, Visa offers a free
online Holiday Budgeting Center. This resource is available through its
award-winning financial education program, Practical Money Skills for
Life, which can be accessed at www.practicalmoneyskills.com/holiday.
"Whether you're planning on giving gift cards or other items that
recipients can use this holiday season, making a budget and sticking to
it is essential to ensure that holiday cheer doesn't turn into a New
Year's financial hangover," Alderman added.
Listed below are five important things to keep in mind when preparing a
holiday budget:
-- Needs vs. Wants: Given that some financial planners say you should spend
no more than 1.5 percent of your annual income ($750 per $50,000 of
annual income) on holiday expenses, take a hard look at what you
typically spend during the holidays and then estimate how much you can
really afford to spend.
-- Make a List--Check it Twice: Once you know how much you can afford to
spend overall, record everyone on your gift list and set an amount you
expect to spend on that person. If you overspend in one area, you must
reduce costs in another.
-- Shop Online: Shopping online will not only help you save time and gas,
but if you plan ahead, you will find many free shipping deals on
internet shopping sites. Since many merchants offer the same items at
different prices, comparison shopping online will also help you avoid
spending more than you need to and pocket the savings.
-- Avoid Last Minute "Panic" Shopping: Plan ahead by making a list of
everything you need to do and plot it out on a calendar so you are not
scrambling at the last minute and making more expensive decisions due to
lack of time or choices.
-- It's the Thought That Counts: Have an open conversation with friends and
family about setting more conservative price limits on gifts for each
other. Or, instead of spending on each other, join together to put your
gift budgets toward helping those who may be less fortunate.
Consumers can find these tips along with other useful tools, including a
budgeting calendar, a Gift Register and Budgeting Tool and a Holiday
Entertainment Planner on the Holiday Budgeting Center. The site also
features a holiday shopping tips video podcast by personal finance
expert, best-selling author and award-winning journalist, Jean Chatzky.
About the Visa Gift Card Survey
The Visa Gift Card Survey is based on telephone interviews with 1,001
men and women 18 years of age and older living in private households in
the United States. The survey was conducted from September 18-21, 2008,
using Opinion Research Corporation as part of its Caravan(R) omnibus
survey service. Results of the survey have a margin of error of no more
than ±2 percentage points at the 95 percent confidence level.
About Visa Inc.
Visa Inc. operates the world's largest retail electronic payments
network providing processing services and payment product platforms.
This includes consumer credit, debit, prepaid and commercial payments,
which are offered under the Visa, Visa Electron, Interlink and PLUS
brands. Visa enjoys unsurpassed acceptance around the world, and
Visa/PLUS is one of the world's largest global ATM networks, offering
cash access in local currency in more than 170 countries. For more
information, visit www.corporate.visa.com.
1 Visa's Zero Liability policy covers U.S.-issued cards only
and does not apply to ATM transactions, PIN transactions not processed
by Visa, or certain commercial card transactions. Cardholder must notify
issuer promptly of any unauthorized use. Consult issuer for additional
details or visit www.visa.com/security.
CONTACT: Visa Inc.
Jennifer Doidge
, 415-932-2564
[email protected]
Source: Visa Inc.