Study shows teens prefer gift cards

BRENTWOOD, Tenn. According to a recent national Teen Gift Card Survey, 98% of all teens between the ages of 14 and 19 have either bought or received a gift card.

Commissioned by Comdata Stored Value Solutions, a leading national gift card supplier and transaction processor, the survey of 604 college-bound teens also reveals that in 2007 teens purchased almost double the number of gift cards they did in 2006 (7.6 vs. 4.3 cards – a 77% increase).  Further, the average loaded dollar amount on cards given went from $28 to $33.

Teens also reported that nearly one-half (46%) of the presents they give are gift cards – a 12% increase from 2006. Males are still more likely to give gift cards (50%) than females (43%), but these electronic cards packed with cash are becoming a more popular gift option every year.

 “As our young people gain more financial freedom, we get a good idea of how they choose to spend their own money,” said Bob Skiba, evp and general manager of CSVS. “Teens are growing up with gift cards – receiving them, gifting them and using them for personal purchases. So gift cards continue to gain popularity with this sought-after group of consumers, and are becoming synonymous with their gifting culture. The information in this survey represents very good news for retailers.”