Gift Card 101

1. Swap it. Sites like GiftCardRescue and SwapAGift let you trade gift cards for one of the same value. Say you’re vegetarian and received $25 to a burger joint — swap it for $25 to Whole Foods to make you and your virtual burger-loving friend happy. Rather than regifting, swapping is a sure fire way to still get the most out of the gift you thought you’d never use!

2. Sell it. Hey, it happens. You’re not going to love every single gift. Luckily, you have options. Sites like CardHub, Plastic Jungle, or LivingSocial are great for auctioning off unwanted gift cards. You probably won’t get the exact face value back, but it’s better than collecting unused gift cards in your desk drawer.Use the trade to get what you really want — or something you really need, like a gift card for new linens or a lighter spring jacket.

3. Donate it. Some charities, especially those that offer donations in-kind (offering clothing or homeware, for example) will also accept gift cards as a donation. Contact your favorite charity and ask if they will accept your gift card. If they do, you can write off its value on your taxes as a charitable donation. Not only will the gift card be better used by someone who really needs it, but you’ll also help reduce your taxable income at the end of the year — which means more in your pocket rather than Uncle Sam’s.

4. Don’t overspend. The problem with gift cards is that they make you buy things you hadn’t necessarily planned on buying. Don’t fall into the trap of spending more than the gift card is worth, or you’re defeating the purpose of having one in the first place. For example, a $100 gift certificate put towards a $300 pair of shoes still results in spending $200 that you hadn’t planned on. Limit yourself to the amount on the card and get the full benefit of the gift. Also remember to leave enough on the card to cover sales tax and other fees. A good rule of thumb is to limit your purchase to 90% of the card’s value, so the other 10% is there to cover unforeseen charges (and to limit yourself from overspending!)

5. Save it. Can’t get to it right away? Save it! With the new rules that passed last year, gift cards can’t expire for 5 years. That includes cards for stores and the general Visa ones that you can use anywhere. And the card has to be dormant for at least a year before the store or card company can start knocking you. So save them for a rainy day or big life moment — for example, those houseware gift cards are probably going to be more useful to you when you move into a new dorm, apartment, or house than they are squandered on candles or random kitchen gadgets. Save them for a time when you foresee being strapped for cash, and you’ll be happy to find some free money in your wallet!