A new study has found that Australians were wasting around $1.4 billion (US$920 million) in gift cards, as many of them were left unused or expired.
The financial comparison website Finder surveyed 1,039 adults to learn more about gift card trends among Australians.
The company found that over one in three respondents (35 percent) had at least one unspent gift card, with 24 percent having two or more.
The average respondent had around $198 in unredeemed gift cards, with men having a higher balance than women.
If this figure is applied to the broader population, Australians are currently sitting on an untouched amount of $1.4 billion.
One in four respondents (24 percent), or an equivalent of 4.9 million people, said they wasted money on unspent gift cards for several reasons.
Around 18 percent left their gift cards expired, five percent lost their cards, and the remaining one percent could not redeem the cards because the businesses shut down.
In addition, women (28 percent) are more likely to let their cards expire than men (21 percent).
Among the age groups, baby boomers (born between 1946 and 1964) had the highest rate of utilising gift cards at 87 percent, compared to just 63 percent in Gen Z (born between the late 1990s and early 2000s).
Sarah Megginson, a personal financial expert at Finder, said gift cards often go to waste despite being a popular gift choice.
“Opting for a gift card is a practical choice when you’re unsure what the person will like, or you want to give them something really useful,” she said.
“Keeping track of them can be challenging, and many end up unused simply because they get lost in a wallet or a drawer.”
Furthermore, the financial expert stated that the unspent gift card problem was exacerbated by the flood of digital notifications and messages, which kept people’s minds occupied.
Expert Urges Australians to Spend Their Gift Cards
Amid the current cost of living crisis, Ms. Megginson told Australians to make the most of their gift cards.“Letting gift cards go to waste is not only a missed opportunity to get value for yourself–you are effectively donating millions of dollars back to retailers,” she said.
“Luckily, any gift cards purchased after November 2019 must come with a minimum three-year expiration period, but don’t delay. Retailers can still go out of business or move locations, leaving you holding the bag.”
The financial expert advised consumers to consider setting reminders on their phones to avoid wasting their gift cards.
“If you have a gift card for a store that you don’t like, consider selling it on an online marketplace for a slightly lesser value so it doesn’t go to waste,” Ms. Megginson said.
The report indicated that four in five shoppers intended to purchase a Christmas gift in-store, while 44 percent said they would only buy gifts from online retailers.
