When it comes to prepaid gift cards, I am no stranger. In fact, I can confidently say that we are close friends. Prepaid gift cards are a popular choice for gifting of course, I think we can all say that we’ve been on the giving and receiving end and know the benefits of both.
They are such a practical and convenient option when it comes to gifting, whether it be that hard to shop for person or simply because you truly want them to have what they need. Most people wouldn’t be comfortable saying that the ultimate gift for them this time of year is help with their household bills. Prepaid’s on hand means choice isn’t limited and that money can go toward peace of mind or that vacation.
Yet, let’s take the idea of prepaid gift cards on step further, because they’re aren’t just for gifting and receiving. Have you ever considered that they are the ultimate tool when it comes to staying on budget? Yes!
I’ve been trying a new budgeting tactic these last few months, using prepaid gift cards as a tool for modern budgeting!
Disclosure: This is a compensated post as part of my affiliation with the brand, yet as always, all opinions are my own.
How to Budget using Prepaid Gift Cards
I consider myself a super savvy frugalista thanks to all that I’ve learned about my own finances and spending habits thanks to prepaid gift cards. If you recall the idea of jars set aside for certain allocations, this is the same idea – yet more practical and a lot more modern. Prepaid gift cards can manage your finances by helping you stick to a household budget!
I have been using a certain number of gift cards at the start of each month – each one allocated to categories such as groceries, dining out, clothing, and entertainment. Since they are widely accepted almost anywhere, they are a simple replacement for your usual methods of payment.
With a set budget for each one, when the gift cards are depleted, so is the spending. It might require some tweaking as you go, as you realize monies truly needed, yet it’s a learning tool right from the start. Actually, it’s a whole new meaning for gift.
Not only does this help stick to budget, but also avoids the temptation of overspending when using other methods such as bank or credit cards. It’s forced education when you’re locked into designated amounts to guard against impulse buys, or spending when you shouldn’t.
How to use gift cards to save money
This method of modern budgeting not only maintains discipline and controls spending, using prepaid gift cards to budget spending categories, will most likely free up extra money allocated for saving. You could even start on Month 1 with a small prepaid for strictly saving as well.
I find that small amounts such as these most certainly do add up, but as long as they aren’t a high and unrealistic amount, if taken right away – it’s money not missed.
While prepaid gift cards are wonderful for gifting and receiving, is that their only purpose? NO WAY! Though they are called “gift cards,” there’s no rule that says they must be given as only gifts.
How to use gift cards as the perfect stash for Blue Monday
Think outside the gift box when it comes to prepaid cards. Buying and allocating prepaid gift cards by person, decor, and even holiday meals – will make sure you stick to a holiday budget and not give your credit cards yet another workout.
As gift card popularity continues to rise, let’s use them to their fullest and jump on their potential as a valuable way to budget crunch. With a built-in brake on spending, they are your resource to stay on budget whether it’s the Christmas season, new years resolution {saving money, curbing spending, paying off debts}, or just a need to make smarter financial decisions.
Have you ever used prepaid gift cards as a budgeting tool?
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