Teen Gift Card Use - Survey Results
Gifts cards are growing in popularity, especially among teens…
A recent survey of 604 college-bound and first year students between the ages of 14 and 19 conducted online between June 29 - July 2, 2007, reveals that 98% have bought or received a gift card and shows an increase of almost 50% in gift card purchases by the same group since 2006. 46% of the presents they give are gift cards, a 12% increase.
The survey was commissioned by Comdata® Stored Value Solutions, a Brentwood, Tennessee business-to-business issuer and processor of payment cards, primarily in the retail and transportation industries. “As our young people gain more financial freedom, we get a good idea of how they choose to spend their own money,” said Bob Skiba, executive vice president and general manager of CSVS. “Teens are growing up with gift cards and receiving them, giving them and using them for personal purchases. So gift cards continue to gain popularity with this sought-after group of consumers, and are becoming synonymous with their gifting culture. The info in this survey represents very good news for retailers.”
Cash is the preferred gift but an equal number of teens rate gift cards on the same level of acceptance compare to 40% who prefer actual items as gifts. And once received, 62% of teens use their gift within one month or less. 11% says they keep a gift card for more than two months before using it for the first time. Reloading gift cards is a growing trend. 20% of teens have added funds to a depleted card with an average of an additional $24. 89% used some of their own money when using a gift card to make a purchase.
Other Survey Results:
- 75% of teens have purchased cards for others; 42% have purchased cards for
themselves.
- Young women (38%) were less likely to purchase gifts cards for personal use then young
men (46%).
- 45% of teens, up from 29% in 2006, have purchased a gift card at a gift card mall
(convenience or grocery stores that sell a variety of retailer’s gift cards.)
- 43% of gifts teens receive are gift cards.
- On average, teens report that the gift cards they receive are loaded with $25 per card.
- Teens surveyed reported spending an average of $101 yearly on gifts.
“Cards are being reloaded for future use and convenience,” said Skiba. “From a parent’s perspective, it’s a great way to control where your teen spends his or her money. From our young people’s perspectives, it’s a way to maintain financial freedom when making purchases - especially when they don’t have their own credit or debit card yet.”
