AI-assisted summary
• Gift cards are becoming increasingly popular for gift giving, surpassing traditional presents in desirability.
• This shift is driven by a desire for recipient selection and practicality, aligning with the long-standing acceptance of money as a gift.
• While gift cards propose flexibility, considerate selection based on the recipient’s interests remains crucial for a meaningful gift.

When it comes to gifts, it seems money – or its colorful card cousin – is king.

However, gift cards, whether digital or physical, have sometimes been viewed as impersonal presents. Annual holiday shopping trends indicate that this sentiment is changing.

“Gift cards are a normal part of our globe of gifting these days,” Lizzie Post, author and co-president at the Emily Post Institute, told USA TODAY. Post is the great-great-granddaughter of etiquette authority Emily Post.

More people are buying – and requesting – gift cards

Ninety percent of people consider physical gift cards an appropriate item to gift, according to a update from Capitol One. Additionally, a recent survey from financial institution of America found that only 4% said they are happier receiving physical gifts over gift cards.

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Gift cards are also popular on consumers’ aspiration lists this year, with 53% of shoppers requesting them, followed by clothing and accessories at 49%, according to a update from the National Retail Federation.

Most consumers purchase gift cards for retail stores, about 57%, while 52% buy restaurant gift cards, the Capitol One update said. In 2023, 32% of consumers purchased online gaming gift cards. While there is growth in all age groups for purchasing and receiving gift cards, the update found, millennials spend the most on gift cards at $456 per year.

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How the etiquette is evolving

When it comes to etiquette, gift cards aren’t impersonal, Post said, but “it can be a gift that we provide in impersonal ways.”

If the card doesn’t connect with the recipient’s interests – a Starbucks card for a pal who doesn’t frequent the coffee chain, for example – it may arrive across as less considerate, Post said. A gift card that’s more tailored, such as giving someone who loves to knit a card for their favorite craft store, can be more meaningful.

“In some cases, it can be a great way for the giver to have a sense of what the person is going to do with this card or an intention for the card,” Post said.

Post said it’s not surprising that gift cards are growing in popularity because money has long been a popular and appropriate gift.

“That might sound shocking because we ponder there’s a stigma around money, but even in Emily’s books from 1920, there are suggestions that people might provide money as a wedding gift,” Post said. “Having seen it actually as a gift in a number of scenarios throughout the decades, I feel confident saying that money has always been a great gift.”

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Lessons for younger shoppers

Gift cards (and money) are also popular with teens and younger children, allowing them to exercise some liberty in choosing items for purchase at retailers.

Gift cards should be age-appropriate, Post said, with thought given to how the kid would – or even could use it. Some popular online sites might be challenging to access or overwhelming for some age groups to navigate, but a physical card for a physical store could be a better fit.

The encounter can be positive for the youthful customer, combining the thrill of shopping with some light financial expense management.

“As with anything,” Post said, “it’s the thought that counts and how you do it that makes it a great gift.”