In the world of gift-giving, cash and gift cards are extremely popular choices.

Yet, gift cards—be they digital or physical—have occasionally been perceived as lacking a personal touch. Nonetheless, recent holiday shopping trends show that this view is shifting.

“Gift cards are now a standard part of gifting,” shared Lizzie Post, co-president of the Emily Post Institute and author, in an interview with YSL News. Lizzie is the great-great-granddaughter of the renowned etiquette writer Emily Post.

Gift cards are increasingly favored by shoppers

According to a Capitol One survey, an impressive 90% of individuals feel that physical gift cards make for acceptable gifts. Furthermore, a Bank of America study revealed that merely 4% of respondents preferred receiving physical gifts over gift cards.

This year, 53% of shoppers have requested gift cards, ranking them above clothing and accessories, which 49% asked for, in a report by the National Retail Federation.

The majority of consumers purchasing gift cards are leaning towards retail store cards (57%), while 52% opt for restaurant gift cards, according to the Capitol One report. Notably, in 2023, 32% of shoppers bought online gaming gift cards. All age groups are increasingly utilizing gift cards, with millennials leading the way, spending around $456 annually on them.

The changing landscape of gift-giving etiquette

Etiquette expert Lizzie Post emphasizes that gift cards aren’t inherently impersonal; rather, “they might be given in a way that feels less personal.”

For instance, if the gift card doesn’t align with the recipient’s interests—like giving a Starbucks card to someone who doesn’t enjoy coffee—it may seem less considerate. Conversely, selecting a gift card for a favorite hobby, such as a craft store for a knitting enthusiast, can add a meaningful touch.

“In some situations, it helps the giver to have a clearer idea of what the recipient might do with the card or a purpose for it,” said Post.

Post noted that it’s no surprise gift cards are rising in popularity; money has always been a favored gift.

“This might catch some off guard due to the stigma associated with cash, but even in Emily’s writings from 1920, there are indications that money was considered an appropriate gift for occasions like weddings,” Post explained. “Observing its consistent use throughout various times, I confidently assert that cash has always been an excellent gift choice.”

Advice for younger shoppers

Gift cards (and cash) are also favored by teenagers and younger children, as they allow them to choose their own merchandise at retailers.

Post advises that gift cards should be age-appropriate, considering how the child might use it. Some online platforms may be challenging to navigate for certain age groups, making a physical gift card for a brick-and-mortar store a better alternative.

For young consumers, this can be a fun experience, blending the thrill of shopping with lessons in managing finances.

“Ultimately,” said Post, “it’s the thought and effort behind the gift that make it special.”