Forty-two percent of respondents for the 2024 Holiday Shopping Survey by RCC (Retail Council of Canada) included at least one gift card in their Christmas shopping. This is a fast-growing category with an increasing share every year. In 2021 it was just 16%. Canadians planned to spend $972 for the 2024 holiday season. That’s a large chunk that will be going towards gift cards, now commonly seen as a flexible gifting option.
If you’ve received gift cards this Christmas, here are a few ways to make the most of your new stash!
Gift card rules to keep in mind
The first thing to do is check if there are any fees, rules or expiry dates associated with any gift cards you received. Most gift cards in Canada are not allowed to have expiry dates or associated fees. However, gift cards for specific products or services, promotional gift cards, or mall gift cards may have either or both. Read the fine print so you’re not in for a surprise when you try to use the card.
Some places, like British Columbia, have consumer protection laws for gift card users. If you do come across any unfair practices, like businesses not following rules or not honouring the conditions of the gift card, you can report them to Consumer Protection BC. Check what protections and laws apply to your local area, and know your rights.
Tips to maximize gift card use
- Spend intentionally, so you can use your gift cards on things you really need or would have bought anyway – more money in your pocket! Your gift cards could help with purchases like groceries, buying something for your favourite hobbies, skincare and makeup, home goods, etc.
- If you’re a loyalist to any particular store or retailer, request those shops’ gift cards if you can. Talking about money can also include being honest about the things that can add value to your life. If you’re gifting to someone whose tastes you don’t really know, a giftpass can be used at a number of different stores would be a good idea. That way the recipient can choose what brand’s gift card they want.
- If your gift card does have an expiry date, make sure you are able to use it before then or give it to someone who will. Otherwise, it’s essentially money wasted.
- Gift cards are essentially money, so keep them somewhere safe.
- There are a few websites where you can sell your unused gift cards for cash, but remember to verify the legitimacy of the site before you provide any personal financial information.
- Regifting is certainly a viable option. You can either regift the card directly, or what you buy with it, if you are able to get a good deal on your purchase.
Tips to maximize gift card value
Plan ahead to combine gift cards with other offers and deals
Combine your gift cards with other ongoing sales or promos to save more, like Boxing Day, winter clearance sales, or New Year sales. You could greatly reduce how much cash you have to pay out of pocket by shopping sales and using a gift card. You could also wait for post-holiday sales to get deeper discounts on planned purchases.
For even more savings, combine with coupons or seasonal offers. Flyers, weekly deals, ads, seasonal deals, and special offers are opportunities to get deeper discounts but they may happen randomly throughout the year. Plan ahead, keep an eye out, and spread purchases throughout the year to maximize your value.
For example, back-to-school supplies have seasonal sales in September, so use your gift cards at that time to pay for (or even stock up on) something you would be buying anyway. Since most gift cards don’t really expire, you can take your time. If you’re planning to wait for seasonal sales, add a reminder to your phone notes or calendar that you have a gift card for those supplies.
Combine multiple gift cards
If you’ve received multiple gift cards for a brand you like, combine those into a bigger purchase you would’ve had to save up for otherwise. You can also spread out that stash of gift cards over time (check for any expiry dates), essentially using gift cards whenever you want to shop from there. The amount in your cards might last you a good few months this way! Gift cards are essentially money, so keep them somewhere safe.
Always check your gift card balances and stay on top of it, so you’re not caught off guard – especially if you’re handling multiple cards. See if you are able to combine it into one card so it’s easier to keep track of. Otherwise, you might have to pay the balance out of pocket, which might not work well with your budget!
Use store reward points
If you have a specific brand or store card, combine gift card use with store points. This way, you can get even more points, or use your existing points towards the purchase in addition to the gift card.
Check for store-specific sales for the shops you frequent, and combine these with gift cards for greater purchasing power. Sometimes, they even offer gift cards with purchase – if it makes sense financially, take advantage of these offers. All of these can help you get even more store reward points. Plan your shopping to maximize gift card value and cost-effectiveness.
Use cashback apps
Cashback apps will provide rewards on the bill amount, regardless of how you pay. Some are as easy as simply scanning your bill after purchase. This means you can get these benefits even if you pay the bill entirely with gift cards.
Key takeaways
Gift cards are a fast-growing category of preferred Christmas gift purchases for many, up to 42% in 2024 from 16% in 2021. If you’ve received gift cards for Christmas, maximize your gift card value and usage with some of these quick tips.
First, check for fees, rules and expiry dates. Most gift cards in Canada don’t expire, but some do. Read the fine print so you can make an informed decision. Plan your spending intentionally, combine multiple gift cards into a larger purchase, and stay on top of your balances. Regifting or reselling is also a viable option if you genuinely won’t have any use for it.
Combine with other sales, promos or deals, and plan ahead. Spread purchases throughout the year to take advantage of seasonal sales. Look into cashback apps, as well as store-specific sales or points. Using gift cards wisely can support your finances, especially if you’re on a tight budget. If you’re currently dealing with debt, you can contact one of our trained credit counsellors for advice – they can help you figure out which debt relief strategy could be the right fit for your specific situation.