When Sarah Mitchell, a 34-year-old nurse from Ohio, finally sat down one weekend to clean her drawer, she made a shocking discovery: a stack of unused gift cards worth more than $500.
Sarah’s Story: $220 Gone in Thin Air
“I thought it was like found money,” Sarah recalls. “But when I checked, two restaurants had already gone out of business, one card had expired, and fees had eaten away at others.”
By the time she added it all up, she had lost about $220 in free money. “It felt like I had thrown cash straight in the trash,” she said.
Sarah’s story isn’t unique. Millions of Americans are quietly losing money the same way. And the scale of it will surprise you.
The Hidden Fortune in America’s Wallets
Gift cards are meant to be the perfect present: flexible, simple, and always useful. But instead of being redeemed, many are forgotten.
- Two-thirds of Americans admit they have at least one unused gift card.
- The average unspent balance per person is now $175–$244.
- Collectively, that’s more than $21 billion sitting idle — and some estimates go as high as $27 billion.
To put that in perspective, $21 billion could pay off medical debt for millions of Americans or fund a round of federal stimulus checks. Instead, it sits locked up in gift cards, slowly losing value.
Why Do Americans Forget to Spend Gift Cards?
Experts say it’s not just carelessness — there are deeper patterns:
- Procrastination & Forgetfulness – People set them aside to “use later” and never return.
- Wrong Store Factor – Not everyone shops where the card is valid, so it feels useless.
- Inflation – Prices rise, but a $50 card will always be $50, shrinking in real value over time.
- Fees & Expiration – Federal law requires cards to last five years, but inactivity fees quietly reduce balances.
- Retailer Closures – When stores shut down, the cards instantly become worthless.
Every year, thousands of Sarahs across America repeat the same mistake, unintentionally adding billions to this hidden “ghost economy.
Who Really Profits From Your Forgotten Cards
When Sarah lost $220 in unused gift cards, that money didn’t just vanish — it went straight into corporate pockets.
Retailers call this “breakage revenue” — the profits they book when gift cards go unused. For them, it’s one of the cleanest revenue streams: they’ve already been paid, and no product ever leaves the shelf.
- Starbucks alone is believed to have more than $1 billion in unused gift cards sitting on its books.
- Walmart has a similar mountain of unredeemed balances.
- For smaller retailers, every forgotten card is essentially a donation.
This explains why businesses push gift cards so aggressively during the holidays. The industry knows: a huge share will never be spent.
The Generational Divide: Who Wastes the Most?
Data from surveys shows a surprising pattern:
| Generation | Avg. Unused Balance | Why They Hold More |
|---|---|---|
| Millennials | $322 | Receive many as gifts, busy lifestyles, digital clutter. |
| Gen X | $255 | Juggle work & family, often forget small balances. |
| Baby Boomers | $227 | Many prefer cash or checks, less likely to redeem. |
| Gen Z | $142 | Less purchasing power, use cards faster but smaller value. |
Ironically, Millennials — the generation struggling most with student loans and housing costs — are the ones losing the most free money.
More Stories From Everyday Americans
James, 62, Retired Veteran (Florida)
James received multiple gift cards as retirement presents — a mix of restaurants and retail stores.
“I thought I’d save them for special outings,” he said. But after three years, two chains closed, wiping out about $150 in value. “I wish I had just gone out to dinner sooner.”
Emily, 22, College Student (California)
Emily was juggling classes and part-time jobs when she realized she had $90 in forgotten gift cards on an old email account. “For me, that was grocery money for weeks,” she said. “It was like throwing away hours of work.”
Robert & Linda, Busy Parents (Texas)
The couple kept a kitchen drawer stuffed with cards — Target, Home Depot, Starbucks.
“When we finally checked, the total was over $800,” Robert said. “But half had small balances we didn’t bother with, like $5 or $10. We just never cared enough to use them.”
Small balances add up — across millions of families, they create billions in corporate profit.
How to Fight Back Against the Gift Card Trap
Instead of handing free profit to retailers, here’s how Americans can protect themselves:
- Spend Quickly – Treat gift cards like cash. Use them within weeks, not years.
- Digitize Everything – Add them to Apple Wallet, Google Pay, or store apps so they pop up when shopping.
- Check Old Emails & Drawers – Many e-gift cards get buried in inboxes. Search “gift card” in email.
- Resell & Exchange – Use CardCash, Raise, or ClipKard to turn unwanted cards into cash — even if at a discount.
- Donate the Small Balances – $5 may feel worthless to you, but can fund meals or school supplies for charities.
The Bigger Picture
The $21 billion secret isn’t really about gift cards. It’s about how easily Americans lose money in plain sight.
From Sarah in Ohio to James in Florida, Emily in California, and Robert & Linda in Texas — the pattern repeats nationwide. What feels like a harmless little piece of plastic becomes a silent transfer of wealth from households to corporations.
So the next time someone hands you a gift card, remember: it’s not just a thoughtful gesture. It’s cash. And every day you wait, its real value slips away.
News Sources –
https://qz.com/americans-27-billion-unused-gift-cards-1851654949
https://www.ksat.com/news/local/2022/08/23/americans-sitting-on-21-billion-in-unused-gift-cards
https://edition.cnn.com/2023/02/23/business/gift-cards-unused
