Gift Cards are the Gifts of Tyrants.

I had a friend come pick me up to get coffee this morning.

Living near a university, there are coffee shops nearly everywhere—but we knew we’d either be going to Caribou Coffee or Starbucks.

Caribou Coffee was about 10 miles north, Starbucks was about a mile south.

Why were we even considering Caribou? Because my friend David had a gift card.

Which made me ask the question…

How far out of your way do you go to use a gift card?

Ten miles?

We didn’t. My friend even took the time to say, “I know that using the gift card is the financially smart decision…”

We ended up at Starbucks.

We couldn’t make ourselves drive ten miles just to save a few dollars. The time and the gasoline made the idea of a Starbucks a mile away much more appealing.

Gift cards may be free money; but they’re not nearly as valuable and are almost always completely illiquid.

I used to get Best Buy gift certificates for my birthday every year. I hated that. It meant I had to drive 5 exits down the interstate, deal with traffic in the busiest part of town (the area is a nightmare), fight the lines in Best Buy, and buy something I never would have bought or wanted had I not had a Best Buy Gift Card.

Why was I stuck buying things I didn’t want in stores I didn’t shop at?

People Think They Can Spend Your Money Better Than You Can

Just look around. It started with the Government, now its your friends. Are they trying to upset or control you?

Probably not—if they are, get a new friend. They probably just feel strange giving you cash instead of a present. For some reason, if they give you a card they feel like they’ve personalized the gift.

It probably seemed that way for the other thousands of people who bought that identical gift card as well.

Money is plenty personal for me!

There are however, those occasional people that truly did buy you a gift card because they wanted to make sure you spent it in that store. These people drive me insane.

Gift Cards are the Gifts of Tyrants.

Sadly—I’m not talking to those people. There’s no talking sense into those people. But to all of you who are simply trying to personalize your gift:

Money is a great gift for most people. It always comes in the right size, color and everything else! Perfectly customizable and easily exchanged.

Don’t Overthink Gifts! Give Cash!

Why are gift cards worse than money? Loads of reasons! Here are a few:

1. Gift cards limit you to just one store.
2. It’s never the right amount.
   Whether the item you choose to get is less than or more than your gift card, you’ve been screwed.
   Either you end up with money that your gift giver paid on your card that you never use
   Or you have to spend extra money in the store that you wouldn’t have spent to make up the difference.
3. Gift Certificates have Expiration Dates
   I promise your money won’t have an expiration date. Well, actually, at the rate the Government’s going now… nevermind. A post for another day.
4. Gift Certificates force someone to go to a Store
   Giving someone money allows them to hang on to it, invest it, save it or anything else. A gift certificate is like saying, “Here. I didn’t want to get anything so you get up and do it.”
5. Gift Certificates have no Earning Potential
   I can invest a $20 bill and make an average of $2.48 a year according to the last 80 years of market history. My $20 gift certificate will be worth exactly the same a year from now though.

Please—for the sake of your friends and for me. If we all start giving cash instead, we may start the pattern and end the horrid reign of gift cards. Let’s make cash an acceptable gift again.

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