Q. How Much to Spend on a Gift Card?

What's the Perfect Gift Card Amount?

Deciding how much to spend on a gift card involves balancing your budget against recipient expectations. Will a $25 gift card be too low? Could a $100 gift card seem overly generous? This dilemma between affordability and appropriateness can often make selecting the perfect gift card amount stressful.

However, it doesn't have to be that way. By applying my "Whole Gift Rule," you can remove the guesswork in determining how much to spend on a gift card, ensuring both the giver and the receiver are content with the gift.

If you want more ideas than theory, check out my blog post full of Budget-Friendly Gift Card Ideas.

Let's get started.

"Whole Gift Rule" for Gift Cards

The Whole Gift Rule is simple.

Choose a gift card amount that allows the recipient to enjoy a complete experience or purchase without having to spend their own money. This guideline means considering what your recipient can fully enjoy at a store or restaurant of their choice at no extra cost. Of course your budget matters too. So here are the factors to consider when deciding how much to spend on a gift card:

What to Consider in Choosing a Gift Card Amount

Consider the following factors to ensure your gift card is both thoughtful and practical:

1. Your Budget: First and foremost, determine what you can comfortably afford. Gift giving should not lead to financial strain.
2. Recipient's Interests: Think about what the recipient loves. Whether it's dining, gaming, or shopping, the gift card should align with their interests.
3. Average Cost of Items or Services: Research how much typical items or services cost at the chosen venue or store. This ensures the amount on the gift card is adequate.

Then, determine the ideal gift card amount by balancing these three factors. To better understand how to apply the Whole Gift Rule, take a look at this helpful infographic that breaks down each step.

INFOGRAPHIC: The Ideal Gift Card Amount

In the infographic below, I share my three steps to determining how much to spend on a gift card plus a practical example showing The Whole Gift rule in action.

Whole Gift Rule in Action!

Here are a few more examples of how to apply my Whole Gift Rule to decide how much to spend on a gift card.

• For Casual Dining: A $25 gift card to a place like Jamba or Subway can cover a full meal without the recipient needing to add their own funds.
• For Retail Therapy: If you're considering a retailer like Old Navy or Sephora, a $50 gift card can generally cover a decent portion of the purchase, but high-end department stores might require a higher gift card amount to provide a full shopping experience.
• For Entertainment: Movie tickets, streaming services, or even a round of golf can vary widely in cost. A $50 gift card might cover two cinema tickets, but a day at a golf course might require $100 or more.

PRO TIP: If you're unsure which gift card fits your budget and meets the recipient's interests, opt for a flexible gift card that can be used anywhere, like a Visa gift card or a Giftly. Remember that you'll pay a small activation fee for these options.

Why the Whole Gift Rule Matters

I once explained my "Whole Gift Rule" to a reporter who responded, "You're right. If the gift card doesn't cover the costs of goods in a store, then it's really just a coupon." Bingo. That's exactly right.

And we all know how coupons pile up unused.

According to Capital One Shopping, "Only 0.85% of all coupons issued in 2023 were redeemed." Another survey by that same outlet reports, "47% of American adults have unused gift cards, and the total value of these unspent funds in the U.S. is around $23 billion."

Neither report shares why gift cards aren't used, but I've talked to enough consumers to have some good ideas. In my experience, gift cards go unused for the following reasons:

• Don't like the products or services available
• No online option or convenient location nearby
• Not enough value on the card to justify the purchase--hard to use a small balance gift card.
• Lose the gift card or forget you have it

So you see, the question you started with—how much to spend on a gift card—is critical. It doesn't matter how much you spend if the recipient can't (or won't) use the value. And then whose money is being wasted?

It's yours, my friend.

Here's a personal example to drive this point home:

My daughter once received a $20 gift card to a popular children's toy and experience store. While we appreciated the gift, I instantly knew that the dollar value would not come close to covering the full cost of an item or experience at that store. And given that I had three kids at the time, I pictured myself either having to buy EVERY KID a stuffy or watching my daughter pick out a plush cuddly while my two smaller children had meltdowns over not getting to do the same. Worse than a coupon--that gift card was a ticket to a shopping disaster.

So I never used that gift card. (TBH, I sold it for cash back when there were several ways to do that.)

Choosing the right gift card amount with the Whole Gift Rule ensures the gift truly delights the recipient, rather than going unused or burdening them with additional costs that could sour the experience.

Trust me on this - I've seen it and lived the experience too many times.

Wrapping it Up

Choosing the right gift card amount doesn't just show thoughtfulness—it ensures that the gift is both enjoyable and practical. With the Whole Gift Rule, you can give confidently, knowing your gift will be used and appreciated. If you ever feel uncertain about what amount is suitable, remember that a little research and consideration go a long way.

Comment below if you aren't sure how much to spend on a gift card or want some suggestions for merchant gift cards within your budgeted amount. I'm always happy to help.

Happy gifting!

Shelley Hunter, Consumer Guide to Gift Cards