Tying Down Your Funds In A Gift Cards
Financial Management

Tying Down Your Funds In A Gift Cards

I was reading how for one of the local malls here they are having a promotion where if you buy a $500 gift card, which could be redeemed at any of the stores in the mall, they will in-return give you a 10% bonus of that amount. So you would essentially get $50 extra. To me that sounded like a lot. The only thing I was debating though was that this is a gift card that would essentially force you to shop in the places at the mall. At the same time, do I really plan to spend almost $500 this year solely on the stores within this place?

I was thinking it the other way too where within a month is there any other way I could make more than $50 with a $500 investment where it would be silly to not do that instead? This is one of those scenarios which I thought would make a lot of sense 100% if you got your friends and family involved in it too. For example, it’s probably more realistic to assume that each person would spend about $100 at the mall. So if you get five people then this could make it that each person gets a $10 bonus and there are more odds that people will actually use all the funds in a non forceful way.

Just the idea of having a large amount of funds in a gift card makes it more likely you will simply use the money on anything just to get rid of it. Example, walking past a food vendor and the saying why not as you have so much money in that card anyways. It’s almost like having too much accessible cash in your wallet or purse.

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