A new study by the financial comparison website Finder revealed that Australians were throwing away approximately $1.4 billion (US$920 million) in gift cards as many remained unused or expired. The company surveyed 1,039 adults to gain insight into gift card trends among Australians and found that over one in three respondents (35 percent) had at least one unused gift card, with 24 percent having two or more. On average, respondents had around $198 in unredeemed gift cards, with men having a higher balance than women. This means that Australians are currently sitting on an untouched amount of $1.4 billion.
According to the study, around 18 percent of respondents allowed their gift cards to expire, while five percent reported losing their cards. Additionally, one percent could not redeem the cards because the businesses shut down. Among respondents, 24 percent or an equivalent of 4.9 million people admitted to wasting money on unspent gift cards. Women appeared to be more likely to let their cards expire than men, with 28 percent of women compared to 21 percent of men. Baby boomers also had the highest rate of utilizing gift cards at 87 percent compared to just 63 percent in Gen Z.
The study was concluded by Sarah Megginson, a personal financial expert at Finder, who highlighted the popularity of gift cards and encouraged people to use them instead of letting them go to waste. She emphasized the need for people to track their gift cards, stating that many end up unused simply because they get lost in a wallet or a drawer. The research further found that around 34 million gift cards are sold annually in Australia, with a total estimated value of $2.5 billion.
Ms. Megginson urged Australians to spend their gift cards, emphasizing that not using them meant donating millions of dollars back to retailers. She advised consumers to consider setting reminders on their phones to avoid wasting their gift cards and to sell any unwanted cards on an online marketplace to prevent them from being wasted. These findings come after a report by Monash University estimated that the average Australian spent around $427 on Christmas presents for their immediate families last month, with the majority of shoppers intending to purchase gifts both in-store and online.