How frugal gift-givers can use rewards points to buy a Valentine's Day present

Flirting with sending a Valentine’s Day gift but wondering how to fund it? If you have a healthy bank of rewards points sitting unused while travel options are limited, a savvy gift idea could be to cash in those points for a present.

This year, Australians are keeping Valentine’s Day costs low after the financial impacts of last year, Canstar’s Love and Money Report, released on Thursday, revealed.

The survey of 1,049 Australian adults showed 30% of people did not plan to spend any money on the holiday because they had decided against celebrating it. Of those who said they would be participating in the tradition of expressing their affection on 14 February, 15% declared they would be doing it frugally, organising a free date or gift for their loved one.

Almost 20% said they wouldn’t be taking part because they didn’t have a partner to share the love.

For those planning to spend, the findings showed 22% of people surveyed intended to spend between $1-$100 on a gift for their significant other, 8% would spend between $101-200, 7% would splash out between $201-$500 and 2% said they would spend more than $500.

Frugal gift-givers with excess reward points may be interested to know that analysis by Canstar showed a variety of gifting options were available via the Qantas Frequent Flyer or Virgin Velocity stores.

Canstar money expert Effie Zahos said while international travel was off the cards and domestic travel plans were frequently being interrupted by state-based COVID-19 restrictions, rewards points did not have to sit idly by just because they could not be used to buy flights.

“When it comes to rewards points there is more value in travel, though if you’ve amassed a tonne of points and don’t intend to fly anywhere anytime soon, it could be worth looking at whether you can be using them on other items,” Ms Zahos said.

“When cash flow is tight, it’s far better to preserve your cash and use your points rather than have them sitting somewhere doing nothing for you.”

Canstar research found that points holders could outlay between 6,000 and 10,000 points for a gift valued at up to $50, while those wanting to buy an item valued at up to $100 may have to hand over between 14,000 and 22,000 points.

For those wanting to spend big on their significant other, items of up to $500 in value from the Qantas and Virgin stores could include a hot air balloon experience, a hotel stay, or electronics like Airpods, though these will set buyers back between 42,000 to 100,000 points.

Valentine’s Day gifts to purchase with rewards points

Gifts under $50

Gifts under $100

Gifts under $200

Gifts under $500

Source: www.canstar.com.au – 27/01/2021. Points required based on advertised points on the Qantas Frequent Flyer Rewards Store and Velocity Frequent Flyer Rewards Store obtained on 27/01/2021. Gift value based on RRPs obtained on 27/01/2021. Table sorted by gift value category, followed by points required in ascending order, followed by gift in alphabetical order.