One of the big shopping trends this past Christmas season was the gift card. It's really a gift certificate but looks like a credit card.
The mysterious thing about gift cards (and some gift certificates too) is they expire.
Let me see if I understand how this works.
I want to buy someone a gift, but don't know what they want. So I buy a gift card for them - say from Canadian Tire. I spend $50 for the gift card and my friend gets it on their birthday.
If I gave my friend $50 in cash, they would be able to spend that money today, tomorrow or a decade from now. Money's money.
If I gave my friend $50 in Canadian Tire Money, the same would pretty much apply.
However, if I give them a $50 gift card, they have to spend it within 2 years
from the date I purchased the card or else
it expires.
How can that be? How can money expire?
I'm not sure what the rationale is for companies to make their gift cards expire. Sure, most people will spend their $50 within two years, but some won't. Some will forget about the card altogether until they find it buried in their couch. They'll remember the birthday present and then go shopping at a Canadian Tire store sometime in the next couple of months - at which time they'll find the card has expired.
Of course, Canadian Tire still gets to keep the $50 if someone doesn't use the card before its expiry date. How convenient - for Canadian Tire, that is.
Home Depot also has gift cards, but theirs have no expiry dates on them.
The gift card represents another dimension of "the cashless society". The cash you spend today may disappear into the pockets of some corporation in a couple of years.
Think about that the next time you're thinking of a present for someone.