by Lena Matthew
On a birthday or holiday as children and or young adults many expect and receive tangible gifts. But as we get older our interests change and it gets harder and harder to find that perfect gift. So now instead of gifts we now receive gift cards, but why would you want to limit yourself to one store instead of having the cash in hand to go wherever you want to go. This idea is called rational self interest. This means that you make choices based on what you think will benefit you the most.
When you receive gifts for a holiday or birthday do u always like them? Well I know I don’t sometimes. But then you have to go through the hassle of going back to the store to exchange it for something that you actually want.
Gift cards are a little better because you can have the choice of getting something that benefits you the most. But this also limits you to one particular store. But if you don’t like the store then the gift card is worthless. It won’t benefit you at all; all it will do is waste money.
Now cash on the other hand has a much greater appeal to itself. With cash there are no limits to what you can use it on. This makes cash more of a rational self interest to you. If you have a family, receiving cash for a holiday or birthday is used more affectively because there are so many expenses that go into raising a family. With the cash given you can use it for groceries, diapers, gas, or maybe even a family night out. Some people would rather a family night out because that is what they see is best fit for their own benefits.
Over all, most people prefer cash over gift cards because they can use it in a way that will benefit their interests. But on the other hand now days if you give a teenager money it could be used to supply them with drugs, alcohol, illegal betting, and so on. This is why most times teenagers get the gift cards because the person giving the gift cards feels like it’s more of a benefit to them that their family or friends won’t use the cash for the wrong things.
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Around my birthday and the holidays, cash is definitely the most preferred gift. I can spend it on whatever I like. Gift cards are also great gifts, but obviously can only be spent at one establishment. In order to influence consumers into purchasing gift cards, businesses use incentives. For instance, Giant Eagle offers double food perks when you buy a gift card. Also, CoinStar does not charge you a fee if you convert your change into a gift card. Lastly, gift cards are a great way to control how kids spend their money.
-Ryan Slaby
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