Using Gift Cards To Manage Grocery Budget

Today’s feature blog is Frugal Homemaker Plus with a tip for budgeting with gift cards:

Then it occurred to me- Gift Cards. You can buy gift cards at most grocery stores. Since I primarily shop at one store, with very occasional stops at a few others for super sale items, I thought it may just be easier to buy a card for that store at the start of each month. I bought a gift card for 150 dollars at my usual store, which left fifty dollars to keep in reserve if we need to make a stop at one of our other stores. I put the card on my credit card (which again, we pay in full each month) so we will even get cash back on that amount. No more trying to figure out how much is left in the grocery budget. I’ve also spent less on groceries since I’ve done this, since I am trying very hard to not go over however much I put on the gift card.

I think that’s a great idea if you find the grocery cash a bit too easy to dip into! The only concern I have is with gift card fraud and buying a card that’s been drained of its value: Source BusinessWeek (link no longer active):

Another increasing common method is for crooks to make copies of a gift card purchased from a store, skimming the magnetic strip, Cogswell said. They then put the copies back at the store counter; every time these cards get activated upon a customer’s purchase, it electronically puts more money on the thieves’ counterfeit cards. Since most customers buy gift cards as presents, they won’t be used for a while, giving these criminals plenty of time to spend the value of the card.

Snopes suggests:

While the e-mailed alert suggests selecting cards only from areas rendered inaccessible to the public (that is, in situations where the check-out clerk has to hand them to you rather than removing them from the rack yourself), keep in mind that store clerks have themselves been known to steal, and don’t count on the isolation of the cards as surefire and certain protection against this form of fraud. Whether you choose a card from a rack or have a clerk hand it to you, always examine both sides of what you’re buying before paying for it, even when that means removing the item from its packaging to do so. If you see signs of tampering, or you see that the card’s PIN has been exposed, don’t purchase the card. Instead, hand it over to the store’s management, pointing out what you saw.

Just something to watch for whenever you buy gift cards.

Don't Miss These Tips:

• Organizing Store Membership & Reward Cards
• Gift Giving: How To Stay One Step Ahead
• Get Organized & Save Cash: Grocery Stockpiling Tips