Make the Most of Your Holiday Gift Cards

A few years ago, I received a gift card from work just before Rosh Hashanah. I put it safely in a drawer, planning to save it for something special. Months later, I found it again, just as I was about to buy something I did not really need. Instead, I used it for groceries and reduced one of our regular household expenses. It was not particularly exciting, but it was certainly useful.

Around three million salaried employees in Israel receive holiday gifts from their employers, usually in the form of gift cards. For retailers, the weeks before Rosh Hashanah are an excellent opportunity to offer promotions and encourage spending. For families, however, gift cards should be treated thoughtfully.

A gift card may feel like “free money,” but it has real financial value. Before heading to the shops, consider using it for something already included in your family budget: groceries, clothing, school supplies or household essentials. This frees up money for other priorities or savings.

Read the terms carefully. Check which stores accept the card, whether it can be combined with promotions and when it expires. Keep the card in your wallet, or save it in a digital wallet, so it is available when you actually need it.

Most importantly, do not let the card determine how much you spend. A 300 Shekel gift card does not save you money if it persuades you to make a 600 Shekel purchase you had not planned. If necessary, split the payment so that only part of the purchase is paid by another method.

At Paamonim, we often emphasize that every financial resource should be given a purpose. A holiday gift card is no exception. Used wisely, it can ease seasonal expenses and help your family begin the new year with a little more room in the budget.