From everyday purchases to travel, entertaining and seasonal activities, a little planning can go a long way. Simple changes to the way you manage your money can help you save more and make your budget stretch further.

One of the simplest ways to manage your spending is a technique called gift card budgeting. A gift card’s value doesn’t change, meaning you know exactly how much you have available to spend before making a purchase. This makes them a useful way to manage money, limit spending and avoid overdraft fees.

Instead of using your debit or credit card for everyday purchases, use preloaded gift cards for specific spending categories, such as groceries. Once a gift card is used up, you can’t spend more in that category until the following month. As an added benefit, purchasing gift cards with a rewards credit card can help you earn points or cash back, creating extra value that can be put toward future expenses.

Why gift card budgeting?

According to Statistics Canada’s Survey of Household Spending, Canadians dedicate a significant portion of their household budgets to essentials like shelter, transportation and food. With the cost of everyday essentials continuing to rise, finding simple ways to manage spending can make a big difference.

For Canadians planning around retirement income, pensions or other fixed expenses, creating clear spending categories can help make everyday purchases more predictable when living on a fixed budget.

While some expenses — such as your mortgage, utilities, car payments and insurance — can’t be paid with gift cards, things such as groceries, home essentials and restaurant gift cards can help you set limits on other purchases.

Unlike many budgeting tools that simply track spending after it happens, gift cards allow you to set spending limits in advance. You can easily track gift card balances through the online CAA Gift Card Store to know your limits on your shopping trip. Plus, Members can earn CAA Dollars® that can be used toward membership renewal.

How can gift card budgeting actually help?

Everyday essentials

Before investing in gift cards, create a list of the essential purchases you and your family make each month, then assign them to categories (add or adjust categories as needed):

• Food/groceries
• Eating out (including coffee)
• Transportation (such as rideshare)
• Pet food and supplies
• Clothing and household items
• Entertainment

By itemizing your monthly needs, you can avoid unplanned purchases and determine in advance what you’re planning to spend on.

Monthly planning also allows you to customize your spending based on your lifestyle. For example, if outdoor entertaining is your summertime passion, a grocery store or restaurant gift card lets you enjoy your favourite pastime, while still sticking to a monthly budget.

Teaching kids how to budget

If you have kids, gift cards can be a simple way to introduce budgeting and responsible spending, as a means of rewarding them for completing chores. Using a gift card can help teach money management while giving teens some autonomy in their spending decisions.

Family vacations

If you’re planning a road trip this summer, CAA also offers reloadable cards, giving you the flexibility to add funds online from anywhere, anytime through your gift card My Account, whether you need to top up before you leave or while you’re on the road. Need funds right away? Digital gift cards can be purchased at any time and are delivered to your inbox within minutes.

Saving time

Once you’ve got your shopping list in order, it’s best to buy your cards in advance so they’re ready when you are.

Your downtime is valuable, and having a CAA Membership means you can purchase and manage various gift cards in one place though the CAA Gift Card Store. You can find cards from many categories ranging from grocery, dining, coffee, food delivery, pet supplies and more. Most cards are available in a range of denominations, so you can tailor the amounts purchased to your budget.

The online CAA Gift Card Store provides flexibility in choosing gift cards and all done in minutes at the comfort of your home. All you have to do is choose the brand, choose digital or physical cards, and select your card amount. The digital card is emailed in minutes, and the physical card is shipped for free in approximately 10 business days. Plus, every gift card purchase earns you five percent back in CAA Dollars®. If you’re spending the money on essentials every month anyway, why not earn a bonus on them?

Gift card budgeting puts you in control of your spending by helping you plan ahead, stay within your budget and make the most of your money. With CAA, you can make everyday spending more rewarding while working toward your financial goals.

More value in every swipe

• Buy gift cards using your credit card to continue earning card perks.
• Earn 5% back in CAA Dollars® on all purchases made through the CAA Gift Card Store, an added benefit not available when buying directly from retailers.
• Use gift cards at retailers with loyalty programs to collect additional perks and rewards on top of your purchase.

Turn your everyday purchases into rewards. Visit the CAA Gift Card Store to shop gift cards for popular brands and earn five percent back in CAA Dollars® every time you buy or reload.