Vouchers Go Unused: Consumers Urged to Consider Cash Gifts

A recent survey from the Competition and Consumer Protection Commission (CCPC) reveals that over one in five people who received gift vouchers last Christmas have yet to redeem them. This finding raises questions about the effectiveness of vouchers as gifts, especially as consumers prepare for the upcoming holiday season amidst ongoing financial pressures.

The annual survey conducted by the CCPC indicates that nearly two-thirds of participants received at least one gift voucher last year. Despite this popularity, 22 percent of recipients have not utilized their vouchers. Grainne Griffin, the CCPC’s Director of Communications, commented on the findings, stating, “Our research shows how popular vouchers are as gifts, but if they’re not used, they’re a waste of money.” She advises consumers to consider cash gifts instead, noting that cash typically comes with fewer restrictions.

Looking ahead to Christmas 2024, the survey suggests that consumers expect to spend an average of €1,163, a slight decrease from €1,177 in 2023. The age group of 45-54 years is projected to spend the most, averaging around €1,465. Households with children are also expected to spend significantly more, averaging €1,601, compared to €995 for those without children.

Griffin noted, “From our research, it appears that consumers are taking quite a sensible approach to Christmas spending.” Despite the rising costs of living, most consumers do not plan to increase their spending significantly compared to last year. She cautioned, however, that holiday expenses can easily spiral out of control, particularly during this financially challenging period.

To manage holiday spending effectively, Griffin recommends that consumers create a detailed list of expenses, including gifts, food, and travel, while assessing their financial resources. She suggests evaluating the number of paydays left before Christmas and considering whether current savings and wages will suffice for holiday costs. If borrowing is necessary, the survey indicates that 19 percent of people plan to use credit cards to cover their expenses.

The findings also highlight noticeable gender differences in shopping habits. Approximately 75 percent of women begin their Christmas shopping before December, compared to around 50 percent of men. Griffin expressed relief that the number of people relying on credit has not increased compared to previous years. However, she also emphasized the importance of choosing the right borrowing options, warning that credit cards can lead to high costs if balances are not paid off promptly.

Additionally, the research examined the rising trend of buy-now-pay-later (BNPL) services. Nearly 10 percent of individuals aged 25-34 plan to use BNPL to manage their holiday expenses. Griffin acknowledged that while the overall numbers using BNPL are low, there is a risk of more consumers adopting it without adequate planning. She cautioned that missed payments can result in quickly accumulating fees, turning a seemingly convenient option into a financial burden.

As the festive season approaches, the CCPC’s research underscores the need for consumers to approach their holiday spending with caution and foresight. With many still feeling the effects of the cost-of-living crisis, making informed financial decisions will be crucial for a stress-free Christmas.